Location: Columbus, OH | Metro: Columbus, OH HUD Metro FMR Area
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 | $960 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $239,442 | 0.51% | F |
| 3BR | $1,450 | $309,982 | 0.47% | F |
| 4BR | $1,650 | $387,762 | 0.43% | F |
| 5BR | $1,914 | $461,727 | 0.41% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1050 for ZIP 43338 (Mount Gilead, OH) in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $252,805. To address this concern, let's consider the typical mortgage payment for a home of that value. Assuming a 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly principal and interest payment would be approximately $1220. Clearly, the FMR does not cover the mortgage payment alone, suggesting that landlords must either rely on higher rents from non-subsidized tenants or seek additional income sources.
The investor may also doubt if there is sufficient demand among renters given that only 24.1% of households in Mount Gilead rent their homes. This percentage indicates a relatively low rental market saturation compared to other areas. However, it is important to note that the demand for rental properties can still be strong even in areas with lower percentages of renters. The local economy and job market play significant roles in sustaining rental demand. Without specific economic indicators for Mount Gilead, we cannot definitively state the level of demand but can infer that the rental market is smaller and potentially more competitive.
A final objection could be whether the voucher program will keep up with the market rents, which are currently at $847. The Housing Choice Voucher program aims to cover a substantial portion of the rent, but it is subject to federal funding and local administration. If the voucher amount remains stable while market rents rise, landlords might face a shortfall. Conversely, if the voucher amount increases in line with inflation and local rent trends, it could provide adequate coverage. As of now, the voucher amount is below the market rent, indicating that landlords may need to adjust their expectations or find ways to manage the difference between voucher payments and market rents.
To summarize, the data shows that the FMR in ZIP 43338 will not cover the mortgage on a $252,805 home, and the rental market saturation is relatively low. Additionally, the current voucher amount is less than the market rent, suggesting potential challenges in managing rental income. Landlords and small-portfolio investors should carefully consider these factors when evaluating investment opportunities in Mount Gilead, OH.
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.