Location: Steuben 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 | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $153,466 | 0.76% | D |
| 3BR | $1,450 | $168,414 | 0.86% | C |
| 4BR | $1,850 | $191,090 | 0.97% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP code 14804 in Almond, NY, can be analyzed using the Fair Market Rent (FMR) and market rent figures for a two-bedroom apartment. The annualized FMR for a 2BR unit is set at $1,110 for FY 2026, while the Census ACS reports the market rent at $983 per month.
To derive the implied gross yield, we first calculate the annual rents. For the FMR scenario, the annual rent would be $13,320 ($1,110 x 12 months), and for the market rent, it would be $11,796 ($983 x 12 months).
Given the median home value of $149,736, the gross yield for the FMR scenario is approximately 8.90%. This is calculated by dividing the annual FMR rent by the median home value: $13,320 / $149,736 = 0.0890, or 8.90%. In contrast, the gross yield for the market rent scenario is around 7.88%, calculated by dividing the annual market rent by the median home value: $11,796 / $149,736 = 0.0788, or 7.88%.
The higher gross yield based on the FMR is more reflective of the potential income a landlord could receive through the Section 8 program. However, the lower gross yield based on market rent reflects the reality of rental prices in the area. With only 9.8% of residents being renters, it's clear that the demand for rental properties, including those under the Section 8 program, is limited. This low renter density suggests that landlords might face challenges in filling units, particularly if they rely solely on Section 8 tenants.
The N/A-day Days on Market (DOM) indicates an issue with data collection or reporting, which could mean that there isn't enough recent activity to gauge how quickly rental properties are filled in this area. This lack of data makes it difficult to predict the turnover rate for Section 8 properties specifically.
In conclusion, while the FMR-based gross yield of 8.90% offers a higher return compared to the market rent-based gross yield of 7.88%, the actual performance for landlords in ZIP 14804 may lean closer to the market rent scenario due to the low renter density. Landlords should consider these factors when evaluating the potential profitability of Section 8 properties in this area.
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.