Location: Erie County, OH | Metro: Erie 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 | $930 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $388,124 | 0.31% | F |
| 3BR | $1,530 | $484,238 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 43438, which encompasses Kelleys Island, Ohio, presents an interesting scenario for both renters and landlords alike. The median income in this area stands at $82,917, suggesting a relatively affluent demographic. However, the market rate for rental properties is listed as N/A, indicating a lack of comprehensive data on typical rental prices in the region.
In contrast, the Fair Market Rent (FMR) as determined for Section 8 vouchers is set at $1,110 per month for the fiscal year 2026. This figure represents the standard payment amount for housing assistance in the metro area. Given the limited data on actual market rates, it is crucial for landlords to consider the FMR when setting their own rental prices, especially if they wish to attract tenants who rely on housing vouchers.
The ZIP code has a small population of 128, with 8.2% being renters. This low percentage of renters suggests a competitive market for landlords, as there may be fewer potential tenants relative to the number of available rental units. In such a tight market, affordability becomes a significant factor in tenant selection. If the actual market rate is higher than the FMR, then the majority of renters may find it difficult to afford living on Kelleys Island without financial assistance.
The affordability gap between the median income and the FMR highlights the importance of considering both voucher and cash-paying tenants. For landlords, this means evaluating the benefits of accepting Section 8 vouchers against the potential for higher rents from cash-paying tenants. Accepting vouchers ensures a steady stream of income, albeit at a fixed rate, while pursuing cash-paying tenants might result in higher monthly revenues but also requires navigating a potentially smaller pool of renters.
The takeaway for landlords is to carefully balance their portfolio between voucher and cash-paying units based on the local demand and the competitive landscape. While the median income suggests a strong potential for cash-paying tenants, the small size of the rental market and the reliance on vouchers by some residents mean that landlords should consider offering a mix of both types of rental arrangements to maximize occupancy and income stability.
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.