Location: Chautauqua County, NY | Metro: Cattaraugus 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 | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $159,229 | 0.68% | D |
| 3BR | $1,420 | $193,616 | 0.73% | D |
| 4BR | $1,490 | $217,633 | 0.68% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 14738, which includes Frewsburg, NY, in Cattaraugus County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1,070 per month for the fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher program will pay for a two-bedroom rental unit in this area.
In contrast, the local market rent for a similar unit, according to the Census American Community Survey (ACS), is $819. This difference between the SAFMR and the local market rent can be significant for landlords who are considering participating in the Section 8 program.
A landlord should understand that the voucher payment is not simply the SAFMR figure. It also includes the tenant's portion of the rent and any utility allowances. The tenant's portion is typically 30% of their adjusted income, which must be verified by the local housing authority. Utility allowances vary but are generally around $100 to $150 per month, depending on the specific circumstances of the tenant and the location.
To illustrate, if a tenant has an adjusted income that results in a monthly contribution of $200 towards rent, and they receive a utility allowance of $120, the total reimbursement to the landlord would be:
$1,070 (SAFMR) + $200 (tenant contribution) + $120 (utility allowance) = $1,390.
This calculation shows that the landlord could potentially receive a higher monthly payment than the local market rent of $819. However, it is important to note that the tenant's contribution is capped at the SAFMR amount. Therefore, the actual reimbursement to the landlord is limited to the SAFMR plus the utility allowance, which in this case is $1,070 + $120 = $1,190.
Given the local market rent of $819, the typical surplus for a two-bedroom unit in ZIP 14738 is $371 ($1,190 - $819). This surplus means that landlords in this area can expect to earn above the typical market rate when renting to tenants with Section 8 vouchers, making it a financially viable option for those interested in participating in the program.
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.