Location: Henry County, OH | Metro: Henry County, OH
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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,340 |
| 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 | $1,000 | $161,033 | 0.62% | D |
| 3BR | $1,340 | $217,626 | 0.62% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 43534 in Mc Clure, OH, reveals some interesting insights when comparing the federal market rent (FMR) to the market rent. For a two-bedroom unit, the annualized FMR for fiscal year 2026 is set at $970, while the Census ACS reports a market rent of $735.
To derive the gross yield, we first calculate the annual rent for both scenarios. The annual FMR for a two-bedroom unit would be $970 multiplied by 12 months, totaling $11,640. In contrast, the annual market rent would be $735 multiplied by 12 months, resulting in $8,820.
Next, we compare these annual rents to the median home value in the area, which is $189,712. The implied gross yield based on the FMR would be approximately 6.14%, calculated by dividing $11,640 by $189,712. On the other hand, the gross yield based on the market rent would be about 4.65%, derived by dividing $8,820 by $189,712.
Given the 20.2% renter density in the area, it is important to note that a significant portion of the population is likely to prefer homeownership over renting. This suggests that the market rent scenario might be more reflective of the actual rental income landlords can expect. However, the N/A-day DOM (days on market) indicates that there is no readily available data on how long properties typically take to rent, which could affect the accuracy of the gross yield estimates.
In conclusion, the gross yield based on the FMR is 6.14%, whereas the gross yield based on the market rent is 4.65%. While the FMR scenario presents a higher gross yield, the market rent figure provides a more grounded expectation for landlords and small-portfolio investors considering Section 8 participation in ZIP code 43534.
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.