Location: Allegany County, NY | Metro: Allegany County, NY
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 | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $94,051 | 1.1% | B |
| 3BR | $1,270 | $118,826 | 1.07% | B |
| 4BR | $1,630 | $120,371 | 1.35% | A |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 14715, which encompasses Bolivar, NY, reveals a significant gap between the Fair Market Rent (FMR) set at $1,000 for the fiscal year 2026 and the actual market rent reported at $821 according to the Census ACS. This gap stands at $179, or 21.8%, indicating that landlords can potentially charge more than what the market currently dictates for rental properties.
Given that the FMR exceeds the market rent, this situation presents a yield play for landlords and small-portfolio investors. By participating in the Section 8 program, landlords can secure higher rents compared to the open-market rates. For instance, while the average renter in Bolivar, NY might be paying $821 per month, landlords who accept Section 8 vouchers can charge up to $1,000, thereby increasing their rental income by $179 per unit each month. This is particularly advantageous in an area where only 28.5% of residents are renters, suggesting a smaller pool of potential tenants.
The median home value in Bolivar, NY, is $101,656, and the median household income is $55,640. These figures underscore the economic conditions that make the Section 8 program attractive for landlords. With lower overall income levels and a limited number of renters, the stability and guaranteed payment from the government-backed vouchers can offset the risks associated with finding and retaining tenants in a less densely populated rental market.
However, it's crucial to note the implications of accepting housing voucher tenants at rates below the open-market price. While the FMR provides a higher benchmark, landlords must still adhere to the maximum allowable rent set by the voucher program. In practice, this means landlords might receive slightly less than the full $1,000 if the voucher amount is calculated based on the market rate of $821 plus the tenant's portion of the rent. This could result in a landlord receiving approximately $900-$950, depending on the specific rules and adjustments made by the local housing authority.
In conclusion, the gap between the FMR and the market rent in Bolivar, NY, represents a strategic opportunity for landlords to increase their rental yields through the Section 8 program. Despite the potential for receiving slightly less than the FMR due to voucher calculations, the overall benefit of securing stable, long-term tenancy at rates above the current market average makes this a favorable investment strategy in the local rental market.
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.