Location: Sandusky County, OH | Metro: Ottawa County, 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 | $730 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,270 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $860 | $103,343 | 0.83% | C |
| 2BR | $1,030 | $144,608 | 0.71% | D |
| 3BR | $1,270 | $191,888 | 0.66% | D |
| 4BR | $1,530 | $227,467 | 0.67% | D |
| 5BR | $1,775 | $262,325 | 0.68% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $950 for ZIP 43420 in Fremont, OH, will sufficiently cover the mortgage on a home priced at $173,649. To address this concern, it's important to note that the FMR is the benchmark used to determine rental subsidies. However, the actual mortgage payment on a $173,649 home would depend on factors such as interest rates and loan terms. Assuming a typical 4.5% interest rate and a 30-year fixed mortgage, the monthly payment could be around $850, which is below the FMR. This suggests that the FMR could indeed cover the mortgage, leaving room for profit.
The investor may also wonder if there is sufficient renter demand in ZIP 43420, given that only 30.6% of the population are renters. While this percentage is relatively low, it does indicate a substantial number of potential tenants. Additionally, the presence of Section 8 housing options, such as those listed at Delaware Acres, shows that there is an ongoing effort to support low-income families in finding suitable housing. This can help stabilize the rental market and ensure a steady stream of tenants.
Another objection could be whether voucher amounts will keep up with the market rents, currently at $807. According to the data, the FMR of $950 is higher than the market rent, suggesting that voucher holders should have enough subsidy to cover the cost of renting. However, the exact amount of the voucher is determined by the local housing authority and can vary based on family size and income level. Therefore, while the FMR provides a good indicator, the actual voucher amount might not always match the market rent, and landlords must verify the specific voucher amount for each tenant.
In summary, while the data points to a positive outlook for landlords and small-portfolio investors in ZIP 43420, some uncertainties remain regarding the precise mortgage payments and the variability of voucher amounts. Nonetheless, the FMR and the presence of Section 8 housing units provide a solid foundation for investment in the area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.