Location: Hocking County, OH | Metro: Hocking County, OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 43158 reveals a detailed picture of the potential returns for landlords and small-portfolio investors considering Section 8 properties. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for FY 2024 is set at $930 per month. When annualized, this figure amounts to $11,160 per year. In contrast, the market rent for a similar unit, based on Census ACS data, stands at $956 per month, equating to an annual rental income of $11,472.
To derive the cap rate, we must consider the median home value in the area. However, the median home value for ZIP 43158 is currently not available (N/A), making it challenging to calculate an exact cap rate. Nonetheless, we can still provide insights into the gross yields for both the FMR and market rent scenarios. For the FMR scenario, assuming a property value of $100,000 (for illustrative purposes), the gross yield would be approximately 11.2%. This is calculated by dividing the annual rental income ($11,160) by the property value ($100,000).
In the case of market rent, using the same property value assumption, the gross yield increases slightly to about 11.5%, calculated by dividing the annual rental income ($11,472) by the property value ($100,000). These figures suggest that the gross yield under market conditions is marginally higher than under Section 8 guidelines.
Given the high renter density of 67.6% in ZIP 43158, it is evident that there is a significant demand for rental properties in the area. This density implies a robust tenant pool, which could favor market rents over FMRs. However, the lack of available data on the days on market (DOM) for properties in this ZIP code hinders a precise assessment of how quickly properties might be leased at either rate. Despite this limitation, the data supports a preference for market rents due to their higher gross yield, although the decision ultimately depends on the investor's risk tolerance and the specific dynamics of the local rental market.
Data Sources: FMR data from HUD (2027). 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.