Location: Marion County, 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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $296,481 | 0.45% | F |
| 4BR | $1,460 | $414,066 | 0.35% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 43356 reveals a significant disparity between the Federal Market Rent (FMR) for Section 8 and the market rent, impacting the potential cap rate for real estate investments in this area.
Based on the data provided, the annualized 2BR FMR for Section 8 in FY 2024 is $1120. This translates to an annual rental income of $13,440 per unit. Given the median home value of $302,800, the implied gross yield for a property rented through Section 8 would be approximately 4.4%. This calculation is derived by dividing the annual rental income ($13,440) by the median home value ($302,800).
In contrast, the market rent for a 2BR unit in ZIP 43356 is $790 according to the Census ACS data. This equates to an annual rental income of $9,480 per unit. Using the same median home value, the implied gross yield for market rent would be about 3.1%, calculated by dividing the annual market rent ($9,480) by the median home value ($302,800).
When comparing these two gross yields, it's clear that renting through Section 8 provides a higher return at 4.4% compared to the market rent yield of 3.1%. However, the decision on which scenario is more realistic hinges on the local rental market dynamics and the percentage of renters in the area. With a renter density of 15.7%, the demand for rental properties, including those under Section 8, is relatively low. This suggests that while the Section 8 scenario offers a better gross yield, the difficulty in finding tenants willing to participate in the program could make the market rent scenario more practical for many landlords and small-portfolio investors.
The N/A-day DOM (Days on Market) indicates incomplete data regarding how long properties typically remain on the market before being leased. This lack of information makes it challenging to predict the ease or difficulty of securing tenants under either scenario. Nonetheless, the higher gross yield from Section 8 rentals must be weighed against the potential challenges in tenant acquisition and the overall market conditions.
For landlords and small-portfolio investors considering Section 8 participation, the 4.4% gross yield is attractive. However, they should also consider the lower gross yield of 3.1% from market rents as a viable alternative, especially if the local rental market does not support the rapid turnover of Section 8 units.
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.