Location: Chautauqua County, NY | Metro: Chautauqua 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 | $730 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $246,469 | 0.43% | F |
| 3BR | $1,390 | $313,123 | 0.44% | F |
| 4BR | $1,440 | $427,912 | 0.34% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 14728, DeWittville, NY, provides a critical insight into potential investment opportunities. Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $1,000 annually for fiscal year 2026, the implied gross yield can be calculated. Given the median home value of $260,544, the annualized rental income would result in a gross yield of approximately 0.38%. This calculation assumes that the property can be rented out at the FMR rate.
However, the market rent for the area is listed as N/A, indicating a lack of available data. If we were to assume that the market rent aligns closely with the FMR, the gross yield would remain around 0.38%. But if the market rent is significantly higher, the gross yield could improve, making the investment more attractive. For instance, if the market rent were to be $1,200 annually, the gross yield would increase to about 0.46%, providing a better return on investment.
The 11.0% renter density suggests that while there is a demand for rentals, it is relatively low compared to other areas. This lower density could indicate challenges in finding tenants, although it does not necessarily preclude profitability. The N/A-day Days on Market (DOM) further complicates the analysis, as it is unclear how quickly properties are typically leased in this area. Without specific DOM data, it's difficult to predict vacancy rates accurately.
Given the available data, the FMR-based scenario with a gross yield of 0.38% is more realistic. While this yield might seem low, it is important to consider the stability and security that Section 8 provides, including guaranteed rental payments and a steady stream of income. For investors looking for low-risk investments, the FMR scenario offers a predictable and stable return, even if it is modest.
In conclusion, the cap-rate analysis for ZIP 14728 leans towards a conservative gross yield of 0.38% based on the FMR. This figure should be considered alongside other factors such as property management costs, maintenance expenses, and the overall economic conditions of the area before making an investment decision.
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.