Location: Ottawa County, OH | Metro: Ottawa County, OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 43468 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area in fiscal year 2024 is set at $1130. However, the market rent data is currently unavailable, which makes it challenging to provide a precise percentage comparison. Despite this lack of specific market rent figures, the implications of the FMR can still be analyzed.
Given that the FMR is higher than the typical market rent in many areas, it suggests that voucher tenants could potentially offer landlords a yield play. In other words, landlords who participate in the Section 8 program might find themselves receiving rents that are closer to the FMR, thus generating a higher yield compared to renting out properties at the lower market rates. This scenario benefits landlords by providing a more stable and predictable income stream, especially in regions where the rental market is sluggish or uncertain.
However, if the market rent were higher than the FMR, landlords would face a different situation. They would have to accept a lower rent from voucher tenants, which is typically set at 30% of their adjusted income. This means that landlords might have to absorb the difference between the FMR and the actual market rent, leading to a potential reduction in profitability. The cost of housing voucher tenants below open-market rates can be substantial, and landlords must weigh this against the benefits of guaranteed payments and reduced vacancy rates.
The broader context of ZIP 43468 includes a negligible 0.0% of renters, indicating that the majority of residents own their homes. With a median home value that is also not available, but a median income of $130,533, it's clear that the area has a strong economic base. This high median income can support higher rental rates, making the potential gap between FMR and market rent even more critical for landlords and small-portfolio investors to consider.
In conclusion, the Section 8 program in ZIP 43468 presents an opportunity for landlords to receive stable rental income that aligns closely with the FMR. This can be particularly beneficial given the area's low renter population and high median income. However, without specific market rent figures, it's difficult to quantify the exact financial impact or the percentage gap between FMR and market rates. Landlords should carefully evaluate these factors before deciding to participate in the Section 8 program.
Data Sources: FMR data from HUD (2027). 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.