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 | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $116,457 | 1.09% | B |
U.S. Census Bureau data (2024)
The analysis of ZIP code 14897, located in Steuben County, NY metro, reveals several key points regarding its viability for rental investment. First, the rent math does not favor landlords. The Fair Market Rent (FMR) for the area, set at $970 for fiscal year 2026, is significantly higher than the actual market rent of $619 as reported by the Census ACS. This discrepancy suggests that landlords may struggle to achieve rents that meet the FMR, leading to potential financial losses if they aim to charge the higher rate.
Second, the acquisition cost of properties in this ZIP code is relatively low, with a median home value of $112,196. However, the lack of available data on days on market (DOM) and the percentage of homes requiring price cuts indicates a possible market inefficiency or lack of recent transactions. This could mean that while the median home value is attractive, the actual purchase process might be challenging due to limited supply or slow sales.
Third, the tenant demand in ZIP 14897 is modest. With a total population of 671, only 17.2% of residents are renters. This small renter base could limit the pool of potential tenants, making it harder to fill vacancies and sustain a rental business.
In conclusion, ZIP 14897 presents a mixed scenario for landlords and small-portfolio investors. While the low median home value offers an affordable entry point into the market, the mismatch between FMR and market rent, along with the limited tenant demand, poses significant challenges. Landlords must carefully consider these factors before investing, as achieving desired rental income and maintaining occupancy levels will likely be difficult 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.