Location: Rochester, NY | Metro: Rochester, NY MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 14615 in Rochester, NY, provides insight into potential investment opportunities. For an annualized Fair Market Rent (FMR) of $1250 for a 2BR property, the total annual rental income would be $15,000. Given the median home value of $182,813, this translates to a gross yield of approximately 8.2%. The calculation is straightforward: $15,000 divided by $182,813 equals 0.082, or 8.2%.
In contrast, using the market rent figure of $1,319 (ZORI), the annual rental income would be $15,828. This yields a gross rental income of about 8.7%, calculated by dividing $15,828 by $182,813. This represents a slightly higher return compared to the FMR scenario.
Given the 45.6% renter density in ZIP 14615, it's important to consider the demand for rental properties. While this figure indicates a significant portion of the population rents, the N/A-day Days on Market (DOM) suggests either limited data or a rapidly changing market, making it difficult to predict how long it might take to find a tenant. However, the higher gross yield based on ZORI reflects the actual market conditions and is likely more realistic for investors looking to assess potential returns.
The FMR scenario, while providing a baseline for government-subsidized housing, does not fully capture the dynamics of the local real estate market. Therefore, for a more accurate assessment of potential investment performance, the ZORI-based gross yield of 8.7% should be prioritized. This aligns better with current market trends and tenant demand, offering a clearer picture of what investors can expect from their Section 8 investments in ZIP 14615.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.