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 | $760 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $372,700 | 0.28% | F |
| 3BR | $1,260 | $510,827 | 0.25% | F |
| 4BR | $1,690 | $595,384 | 0.28% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate scenario for ZIP code 43456 in Put-in-Bay, OH, presents an interesting investment opportunity for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom apartment is set at $950 per month for fiscal year 2024, while the market rent based on Census ACS data is $827 per month.
To calculate the gross yield, we first annualize these figures. For the FMR, this would be $950 multiplied by 12 months, equating to an annual rental income of $11,400. For the market rent, the calculation yields $827 multiplied by 12, resulting in an annual rental income of $9,924.
Given the median home value of $423,401 in this ZIP code, the gross yield for the FMR scenario is approximately 2.7%. This is calculated by dividing the annual rental income ($11,400) by the median home value ($423,401). In contrast, the gross yield for the market rent scenario is about 2.3%, derived from the annual rental income ($9,924) divided by the median home value ($423,401).
The FMR scenario offers a slightly higher gross yield compared to the market rent scenario. However, it's important to consider the local rental market dynamics. With a renter density of only 12.7%, the demand for rental properties might be lower than in areas with higher renter populations. Additionally, the lack of data on days on market (DOM) suggests that there may be limited turnover in rental units, which could impact the ease of finding tenants willing to pay the FMR rate.
In conclusion, while the FMR scenario provides a marginally better gross yield, the market rent scenario is likely more realistic given the low renter density and the potential challenges in maintaining occupancy at the higher FMR rate. Landlords and investors should carefully evaluate the local market conditions and tenant preferences before making investment decisions.
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.