Location: Wyandot County, OH | Metro: Marion County, OH
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 43323 reveals two distinct possibilities based on the available data.
In the first scenario, using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1,050 per month (as of FY 2026), the annual rental income would be $12,600. Given the median home value in the area is $195,081, this translates into an implied gross yield of approximately 6.45%. The calculation is straightforward: divide the annual rental income by the property value ($12,600 / $195,081).
In the second scenario, where the market rent is not available, we cannot accurately calculate a gross yield. However, it's important to note that the absence of market rent data can indicate a lack of robust competition or transparency in the local rental market. This scenario leaves investors without a clear benchmark for potential rental income beyond what is offered through Section 8 programs.
Given the 4.8% renter density in ZIP 43323, it's evident that the majority of residents in this area own their homes rather than renting. This low renter density suggests that the demand for rental properties, including those participating in the Section 8 program, might be limited. Additionally, the lack of Days on Market (DOM) data further complicates the assessment of how quickly a Section 8 rental property could be leased in this area.
The first scenario, with a gross yield of 6.45%, provides a tangible figure for investors to consider. While this yield is not exceptionally high, it offers a stable income stream guaranteed by the government, which can be particularly attractive in a market with low renter density. It's worth noting that this yield does not account for operating expenses, vacancy rates, or other factors that would influence the Net Operating Income (NOI).
The second scenario, where market rent is not available, makes it challenging to compare the potential returns against typical market conditions. Without this information, investors must rely solely on the Section 8 program's FMR, which may not reflect the true rental potential of the area if there were more comprehensive market data available.
In conclusion, while the first scenario offers a clear gross yield, the second scenario highlights the importance of understanding the local rental market dynamics. For ZIP 43323, the 6.45% gross yield under Scenario 1 is the most concrete figure available, providing a basis for investment decisions in the context of the Section 8 program.
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.