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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $150,097 | 0.9% | C |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 14839 provides insight into potential investment opportunities for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom unit in this area, based on fiscal year 2026 data, is set at $970 per month. When annualized, this equates to an income of $11,640 per year. In contrast, the market rent for a similar unit, as reported by the Census ACS, stands at $845 per month, translating to an annual income of $10,140.
To calculate the implied gross yield, we use the median home value of $144,171 as our investment basis. For the Section 8 scenario, the annual income of $11,640 divided by the median home value of $144,171 yields a gross rental yield of approximately 8%. On the other hand, using the market rent figure of $10,140, the gross rental yield drops to around 7% when compared to the same median home value.
The 19.8% renter density in ZIP 14839 suggests a significant portion of the population is likely to be interested in rental properties, particularly those that offer affordable housing options such as Section 8. However, the lack of data on the days-on-market (DOM) makes it challenging to predict how quickly a property might be rented out under either scenario. Despite this, the higher gross yield associated with the Section 8 program, at 8%, is more favorable for investors looking to maximize their returns from rental income.
Given the specifics of the ZIP code, the Section 8 scenario appears to be more realistic due to the higher guaranteed income relative to the median home value. While the market rent scenario offers a slightly lower gross yield of 7%, the certainty of receiving the FMR through the Section 8 program can provide a stable and predictable cash flow, which is crucial for long-term investment planning.
In summary, the Section 8 program presents a better opportunity for achieving a higher gross rental yield in ZIP 14839, with an expected annual income of $11,640 against a median home value of $144,171, resulting in an 8% gross yield. This compares favorably to the market rent scenario, which would result in a 7% gross yield. Investors should consider these figures carefully when deciding whether to participate in the Section 8 program or seek market rents for their properties.
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.