Location: Cattaraugus County, NY | Metro: Cattaraugus County, NY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
ZIP 14706, located in Allegany, NY, within the Cattaraugus County, NY metro area, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) for the area and the actual market rents.
The FMR for a one-bedroom apartment in the Cattaraugus County, NY metro area for fiscal year 2026 is set at $1,040. However, the current market rent for a similar unit in ZIP 14706 is only $782. This indicates that landlords participating in the Section 8 program can expect to receive higher rental income compared to the local market rates, thus providing a stable and reliable cash flow. The difference of $258 per month, or approximately 33%, is substantial and can significantly bolster a landlord's financial position.
Moreover, the median home value in ZIP 14706 stands at $197,159. While this figure does not directly impact rental income, it suggests that property values are relatively low, which can be advantageous when acquiring properties for a Section 8 portfolio. Lower property values mean lower acquisition costs, potentially leading to higher returns on investment when factoring in the above-market rental income provided by the Section 8 program.
ZIP 14706 also has a renter share of 19.6%, indicating a moderate demand for rental housing. With a median income of $73,236, there is a sufficient number of residents who would qualify for the Section 8 housing assistance program, ensuring a steady stream of tenants. Given these factors, ZIP 14706 serves as an excellent cash-flow anchor due to the favorable rent-to-market ratio and the presence of a qualified tenant pool.
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.