Location: Steuben County, NY | Metro: Steuben 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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $148,077 | 0.68% | D |
| 3BR | $1,350 | $161,738 | 0.83% | C |
| 4BR | $1,700 | $168,381 | 1.01% | B |
U.S. Census Bureau data (2024)
A skeptical investor considering Cohocton, NY (ZIP 14826) might raise several valid concerns regarding the viability of investing in properties under the Section 8 program. Let's address these objections directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,040 (for metro FY 2026) cover the mortgage on a $146,603 home?
The FMR of $1,040 must be compared against the expected mortgage payment to determine if it's sufficient. Assuming a typical interest rate and a 30-year fixed mortgage, the monthly payment on a $146,603 home could range widely depending on the down payment and interest rate. For example, with a 5% interest rate and a 20% down payment, the monthly mortgage payment would be approximately $600. This leaves a substantial buffer of $440 per month above the mortgage payment, which can cover property taxes, insurance, maintenance, and still leave some profit. However, with higher interest rates or less down payment, the mortgage payment would increase significantly, potentially leaving little room for other expenses.
Objection 2: Is there enough renter demand at 9.6%?
The rental demand percentage of 9.6% indicates that only a small fraction of the total housing units are rented out. This suggests that there might be limited demand for rental properties, including those under the Section 8 program. While this figure is low, it's important to consider the local context. Smaller towns often have lower rental percentages due to strong owner-occupied markets. Additionally, the demand for Section 8 properties is influenced by factors such as the availability of vouchers and the economic conditions of potential tenants, which aren't directly addressed by this statistic.
Objection 3: Will vouchers keep pace with market rents of $691?
The FMR of $1,040 is set to ensure that voucher holders can afford decent housing. Given the market rent of $691, the voucher amount should theoretically cover the majority of the rent, leaving a smaller gap for the tenant to pay. However, the actual voucher amount can vary based on the tenant's income and family size. It's also worth noting that the FMR is periodically adjusted, but there's no guarantee it will always match the exact needs of the market or the pace of inflation. Investors need to be prepared for potential fluctuations in voucher amounts relative to market rents.
In conclusion, while the data provides insights into the financial aspects of Section 8 investment in ZIP 14826, it does not offer a complete picture of the long-term stability or growth potential of such investments. The low rental demand percentage and uncertainty around future voucher adjustments present challenges that need careful consideration 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.