Location: Rochester, NY | Metro: Rochester, NY MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $182,090 | 0.78% | D |
| 3BR | $1,710 | $221,722 | 0.77% | D |
| 4BR | $1,880 | $269,270 | 0.7% | D |
| 5BR | $2,181 | $321,980 | 0.68% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 14616, located in Rochester, NY, within Monroe County, revolve around the SAFMR (Small Area Fair Market Rent) rates established by the U.S. Department of Housing and Urban Development (HUD). For a two-bedroom apartment in this specific ZIP code during fiscal year 2024, the SAFMR is set at $1360. This figure represents the maximum amount that HUD will reimburse landlords under the Section 8 program.
In contrast, the local market rent for a similar two-bedroom unit, as indicated by ZORI (Zillow Observed Rent Index), stands at $1413. This discrepancy highlights the financial dynamics landlords face when participating in the Section 8 program in this area.
A landlord's actual reimbursement under a Section 8 voucher depends on several factors, including the tenant's portion of the rent and utility allowances. Typically, tenants contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $20,000 per year, the tenant would pay approximately $500 per month. This leaves the remaining balance to be covered by the government voucher.
Hence, for a two-bedroom apartment priced at $1360, the government would cover the difference between the tenant's contribution and the SAFMR. In this case, if the tenant pays $500, then HUD would reimburse the landlord for the remaining $860, making the total reimbursement $1360.
Utility allowances can vary but are generally capped at certain levels. For example, a standard utility allowance might be $300 per month. This allowance does not increase the overall rental payment but rather provides additional funds to help cover the tenant's utility costs.
Given these specifics, landlords in ZIP 14616 who participate in the Section 8 program for a two-bedroom apartment would see a reimbursement gap. The gap is calculated by subtracting the SAFMR from the local market rent. In this scenario, the gap would be $1413 - $1360 = $53. This means landlords would receive $53 less per month than the local market rate for a two-bedroom unit.
To summarize, the economics of Section 8 in ZIP 14616 involve a fixed reimbursement rate of $1360 for a two-bedroom apartment, while the local market rent is higher at $1413. Landlords must account for this $53 shortfall when deciding whether to participate in the program. It's important to note that other factors such as maintenance standards, inspection requirements, and tenant selection processes also play significant roles in the decision-making process for landlords considering Section 8 participation.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.