Location: Elmira, NY | Metro: Elmira, NY MSA
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 | $1,070 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $140,672 | 1% | B |
| 3BR | $1,720 | $180,851 | 0.95% | C |
| 4BR | $1,880 | $218,945 | 0.86% | C |
| 5BR | $2,181 | $279,106 | 0.78% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 14905, located in Elmira, NY, reveals two distinct scenarios based on the Fair Market Rent (FMR) and market rent figures. Using the annualized 2BR FMR of $1260 for fiscal year 2024, the implied gross yield can be calculated by dividing the annual rent by the median home value. For ZIP 14905, the median home value stands at $169,985.
To derive the gross yield using the FMR, we perform the following calculation: $1260 / $169,985 = 0.74%, which rounds to approximately 0.7%. This figure represents the potential gross yield if a landlord were to participate in the Section 8 program, utilizing the set FMR rates for 2-bedroom units.
Alternatively, considering the market rent of $1,009 per month, as reported by the Census ACS, the annualized market rent would be $12,090. The implied gross yield using this market rent is calculated as follows: $12,090 / $169,985 = 7.12%, which rounds to approximately 7.1%. This scenario reflects the potential gross yield if a landlord were to charge market rates instead of participating in the Section 8 program.
The stark difference between these two yields — 0.7% for Section 8 versus 7.1% for market rent — highlights the financial implications of choosing one over the other. Given that 31.8% of residents in Elmira are renters, there is a significant portion of the population potentially interested in rental properties, including those covered under the Section 8 program. However, the lack of data regarding the days on market (DOM) for rentals complicates the prediction of how quickly a property might be rented out under either scenario.
In conclusion, while the market rent offers a much higher gross yield, the Section 8 program provides a stable income source guaranteed by the government. Landlords must weigh the benefits of stability against the lower yield when deciding whether to participate in the Section 8 program or opt for market rates. The choice should be informed by individual investment goals, risk tolerance, and the local rental market dynamics.
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.