Location: Henry County, OH | Metro: Toledo, OH MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,240 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 43511 hinges on the gap between the Fair Market Rent (FMR) of $1480 and the average monthly rent of $1449. This represents a difference of $31, or approximately 2.1%, indicating that the FMR is slightly above the market rent.
Given the median home value of $173,694 and median income of $66,250, the gap suggests that voucher tenants can provide a yield play. The 15.6% of renters in the area implies a significant portion of the population relies on rental housing, making it a viable option for landlords seeking steady income.
However, the market has shown a decline in home values by 6.8% over the past year, which could affect the overall profitability of investments. Despite this, the cash flow from Section 8 tenants remains attractive due to the consistent rental income, even if it's slightly below market rates.
For small-portfolio investors, the key is understanding the dynamics of the local market. While the market rent is lower than the FMR, the rental yield potential at 6.8% makes it a solid choice for those focused on generating income rather than rapid appreciation.
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.