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 | $1,110 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $224,218 | 0.7% | D |
| 3BR | $1,890 | $266,083 | 0.71% | D |
| 4BR | $2,070 | $292,412 | 0.71% | D |
| 5BR | $2,401 | $317,565 | 0.76% | D |
U.S. Census Bureau data (2024)
Rochester, NY's ZIP code 14623 is a densely populated area with a significant portion of its residents being renters. The total population stands at 26,032, with nearly half, or 49.4%, living as tenants. This demographic makes it an attractive location for rental investments. The median household income in this area is $65,342, indicating a moderate economic status among its residents. The median home value in ZIP 14623 is $253,638, reflecting a balance between affordability and value.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 14623 for fiscal year 2024 is set at $1,470. This figure represents the maximum amount that a Section 8 tenant can pay towards their rent. In contrast, the market rent, measured by the Zillow Observed Rental Index (ZORI), is significantly higher at $2,091 per month. This difference highlights a potential opportunity for landlords who can manage properties effectively to capture a premium over the subsidized rate.
The practical implications for investors depend on their strategy. For those looking to operate hands-off, focusing on Section 8 tenants might be a suitable approach given the lower rent ceiling. However, for hands-on investors interested in value-add opportunities, the gap between FMR and ZORI suggests a chance to improve property conditions and charge closer to market rates once the Section 8 contract expires. This ZIP code offers a blend of stability through government-backed rents and the possibility of higher returns through active management.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.