Section 8 Fair Market Rent (FMR) for ZIP 43230 - 2027

Investment Score for ZIP 43230

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,540
1 Bedroom	$1,650
2 Bedrooms	$1,960
3 Bedrooms	$2,340
4 Bedrooms	$2,660
5 Bedrooms	$3,086
6 Bedrooms	$3,456
7 Bedrooms	$3,732
8 Bedrooms	$3,919

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,960	$251,556	0.78%	D
3BR	$2,340	$336,218	0.7%	D
4BR	$2,660	$435,881	0.61%	D
5BR	$3,086	$556,063	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 43230 (Gahanna, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 43230 in Gahanna, Ohio, is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1320 - 1BR: $1420 - 2BR: $1700 (which represents 22.3% of the median household income) - 3BR: $2040 - 4BR: $2290 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it is important to note that these values are significantly lower than the actual market rents. For instance, the Zillow median price for a 2BR property in this ZIP code is $248,879. This suggests that the actual rental rates in the area are much higher than the FMRs, creating a challenging environment for voucher holders. They will likely struggle to find units that accept their vouchers and fit within the FMR limits. #### Affordability & Renter Profile ZIP code 43230 has a population of 58,076, with 40.2% of residents being renters. The occupancy rate stands at 95.9%, indicating a tight market where demand is high relative to supply. Given the median household income of $91,424, the 2BR FMR of $1700 represents only 22.3% of the median income, which means that many residents can afford to pay more than the FMR for housing. This further exacerbates the challenge for voucher holders who must find units willing to accept their vouchers at the lower FMR rates. The price-to-FMR ratio for a 2BR unit is 12.2x, meaning that the median home value is 12.2 times the FMR. This ratio highlights the significant gap between the market value of homes and the affordability threshold for Section 8 voucher holders. It also underscores the limited availability of affordable rental properties in the area. #### Investor Angle From an investor perspective, the ZIP code 43230 presents both opportunities and challenges. The tight market conditions suggest that there is strong demand for rental properties, which could lead to good cash flow if the investor can secure tenants willing to pay above the FMR. However, the requirement to accept Section 8 vouchers at the FMR rates can be financially restrictive. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the average rental rates in the area. Since the FMR for a 2BR unit is $1700, and the Zillow median price indicates that market rents are likely much higher, an investor would need to assess whether they can achieve a positive cash flow by renting units at the FMR. Given the high occupancy rate and the fact that many residents can afford to pay more than the FMR, it is likely that only a small portion of the rental market is focused on Section 8 voucher holders. The investment grade for this ZIP code would depend on the investor's ability to manage properties effectively and attract tenants willing to pay above the FMR. If the investor can secure such tenants, the investment grade would be favorable due to the strong demand for rentals. However, if the focus is solely on Section 8 voucher holders, the investment grade would be less favorable due to the financial constraints imposed by the FMR. #### Specific Actionable Insights 1. **Focus on Units Above FMR**: Investors should consider targeting units that can command rents above the FMR. For example, a 2BR unit priced at $1700 might struggle to attract enough tenants to cover costs, but a unit priced at $2000 or higher could provide better cash flow. 2. **Diversify Tenant Base**: To mitigate risks associated with the low FMR rates, investors should diversify their tenant base. This includes attracting tenants who do not rely on Section 8 vouchers and can pay market rates. By doing so, investors can ensure a more stable and profitable cash flow. 3. **Consider Property Enhancements**: Investing in property enhancements can help justify higher rental rates. For instance, adding modern appliances, improving insulation, or upgrading the kitchen can make a property more attractive to tenants willing to pay above the FMR. #### Bottom Line For Section 8-focused investors, the ZIP code 43230 (Gahanna, OH) presents a challenging environment due to the significant gap between market rents and FMRs. While the overall rental market is robust, the financial constraints imposed by the FMR make it difficult to achieve positive cash flow solely through Section 8 vouchers. Therefore, the recommendation is to **Skip** this ZIP code for Section 8-focused investments unless the investor can diversify their tenant base and target units that can command rents above the FMR. In summary, while Gahanna offers a strong rental market, the financial limitations for Section 8 voucher holders make it less attractive for investors focused exclusively on this program.

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.