Location: Toledo, OH | Metro: Toledo, OH MSA
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 | $750 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $226,096 | 0.59% | F |
| 4BR | $1,430 | $265,182 | 0.54% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 43451 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these objections directly with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $860 for ZIP 43451 in fiscal year 2024 cover the mortgage on a home priced at $181,494?
The FMR of $860 is a key figure that determines the maximum amount landlords can receive through the Section 8 program. To assess whether this will cover the mortgage, we need to look at the typical monthly mortgage payment for a $181,494 home. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment would be approximately $960. This means the FMR does not fully cover the mortgage payment, leaving a shortfall of $100 per month. However, it's important to note that property taxes and insurance can also be reimbursed under the Section 8 program, which could help offset this difference.
Objection 2: Is there enough renter demand at 39.1%?
The rental demand in ZIP 43451 is represented by the percentage of households renting, which stands at 39.1%. While this figure is below the national average, it still indicates a significant portion of the population seeking rental housing. The demand for Section 8 rentals specifically is harder to quantify without additional data, but the overall rental demand suggests that there is a market for affordable housing options.
Objection 3: Will vouchers keep pace with market rents of $898?
The FMR of $860 is lower than the market rent of $898, indicating that vouchers may not fully cover the market rate. This discrepancy suggests that landlords might need to consider the possibility of receiving less than the full market rent when participating in the Section 8 program. However, the stability of rent payments and the low risk of non-payment make up for this shortfall. Additionally, the voucher amount is adjusted annually based on changes in the FMR, so landlords can expect some level of compensation for inflation and rising costs over time.
In summary, while there are valid concerns regarding the coverage of mortgage payments, the level of rental demand, and the ability of vouchers to keep pace with market rents, the data provides a balanced view. Landlords should carefully evaluate their financial situation and consider the benefits of the Section 8 program alongside these challenges.
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.