Location: Ottawa 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 | $880 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $236,517 | 0.4% | F |
| 2BR | $1,230 | $306,697 | 0.4% | F |
| 3BR | $1,470 | $347,097 | 0.42% | F |
| 4BR | $1,960 | $453,534 | 0.43% | F |
| 5BR | $2,274 | $642,464 | 0.35% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 43452, located in Port Clinton, Ohio, reveals a significant gap between the federally determined Fair Market Rent (FMR) and the local market rent. For a two-bedroom property, the FMR for FY 2024 is set at $910 annually, while the market rent based on Census ACS data is $968.
To derive the gross yield, we need to compare these rental figures against the median home value in the area, which stands at $275,033. Using the FMR of $910, the annualized rental income would be $10,920. This results in a gross yield of approximately 3.97%. In contrast, applying the market rent of $968 yields an annual income of $11,616, translating into a gross yield of about 4.22%.
The higher gross yield based on market rent suggests that properties in ZIP 43452 could generate slightly better returns if rented at market rates rather than through the Section 8 program. However, the decision to participate in Section 8 should also consider the stability of tenants and the potential for lower vacancy rates, which can be crucial for small-portfolio investors.
Given the renter density of 23.2%, it's evident that the majority of residents in Port Clinton prefer homeownership. This implies that there might be less competition for Section 8 tenants compared to market-rate renters, potentially making the FMR scenario more stable. Additionally, the average days on market (DOM) of 40 indicates a relatively quick turnover for homes in the area, which could be beneficial for landlords seeking to minimize vacancy periods.
In conclusion, while the gross yield from renting at market rates ($968) is marginally higher at 4.22% compared to the Section 8 FMR ($910) at 3.97%, the choice between the two depends on the landlord's risk tolerance and investment goals. The stability offered by Section 8 tenants, combined with the quick market turnover, makes the FMR scenario a viable option despite the slightly lower gross yield.
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.