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 | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $143,792 | 0.7% | D |
| 3BR | $1,340 | $175,420 | 0.76% | D |
| 4BR | $1,410 | $163,707 | 0.86% | C |
U.S. Census Bureau data (2024)
In analyzing ZIP code 14747, located in Kennedy, NY, several key points arise that could cause concern for potential investors considering the Section 8 program. Let's address these concerns directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $970 for the metro area in fiscal year 2026 cover the mortgage on a $152,130 home?
The Fair Market Rent (FMR) of $970 does not guarantee coverage of the mortgage on a home valued at $152,130. To determine if the FMR will cover the mortgage, one must consider the interest rate and loan term. Assuming a typical 30-year fixed-rate mortgage and an average interest rate, the monthly payment on a $152,130 home would likely exceed $970. Therefore, relying solely on the FMR to cover the mortgage would not be sufficient without additional income sources or a lower purchase price.
Objection 2: Is there enough renter demand at 23.1%?
The percentage of renters in ZIP 14747 stands at 23.1%. This figure suggests that while there is a smaller proportion of renters compared to homeowners, it still represents a significant portion of the population. However, the data does not provide a complete picture of the rental market dynamics, such as vacancy rates, tenant turnover, and competition among landlords. To fully assess the demand, further research into local rental trends and housing needs would be necessary.
Objection 3: Will vouchers keep pace with market rents of $695?
The current market rent of $695 is below the FMR of $970, indicating that the voucher amount should theoretically cover the majority of market rents. However, the data does not specify how much the voucher amounts will increase in fiscal year 2026 to align with the FMR. If the voucher increases do not match the rise in FMR, landlords might face challenges in covering operational costs or maintaining profitability. It's crucial for investors to monitor updates on voucher adjustments and FMR changes closely to ensure alignment with market rents.
To conclude, while ZIP 14747 offers opportunities for landlords and small-portfolio investors, particularly with the potential for vouchers to cover market rents, the data reveals some risks. The FMR alone may not sufficiently cover mortgage payments on a $152,130 home, and the 23.1% renter rate requires further investigation to understand the true demand. Voucher adjustments need to be carefully watched to ensure they meet the rising FMR. These considerations are vital for making informed investment decisions in this area.
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.