Location: Ross County, OH | Metro: Clinton County, OH
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 | $760 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $157,433 | 0.64% | D |
| 3BR | $1,280 | $232,915 | 0.55% | F |
| 4BR | $1,530 | $299,732 | 0.51% | F |
| 5BR | $1,775 | $353,747 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 43160, Washington Court House, OH, reveals some key insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $980 per month. Using this figure, we can calculate an annualized rental income of $11,760. Given the median home value in the area is $223,646, the implied gross yield based on the FMR would be approximately 5.26%. This calculation is derived from dividing the annual rental income by the property value.
In contrast, the market rent for a 2-bedroom apartment, as reported by the Census ACS, stands at $804 per month. Annualizing this market rent gives us an annual income of $9,648. When this is compared against the median home value, the implied gross yield drops to about 4.31%. This lower yield reflects the actual rental market conditions as opposed to the government-set FMR.
Considering the renter density in ZIP 43160 is 37.4%, it suggests that there is a moderate demand for rental properties. However, the lack of data on days on market (DOM) makes it difficult to gauge how quickly units might turn over or the competition faced by landlords. Despite this, the more realistic scenario for gross yield is likely closer to the market rent figure of 4.31%, as it represents what tenants are actually paying in the local rental market.
Investors should note that while the FMR-based gross yield of 5.26% looks attractive, it may not be achievable in practice due to the actual market conditions. The 4.31% gross yield based on market rent provides a more grounded expectation for rental income generation in this area. Landlords and small-portfolio investors must balance these yields against other factors such as property management costs and vacancy rates to determine the net operating income (NOI).
To summarize, the Section 8 cap rate picture for ZIP 43160 shows an implied gross yield of 5.26% based on FMR, and a more realistic 4.31% based on market rent. These figures provide a clear basis for evaluating the financial viability of rental investments in this area.
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.