Location: Henry County, OH | Metro: Toledo, OH MSA
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 | $820 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $164,498 | 0.62% | D |
| 3BR | $1,360 | $225,465 | 0.6% | D |
| 4BR | $1,700 | $269,489 | 0.63% | D |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 43545 (Napoleon, OH) for Section 8 purposes, they must follow a structured decision-making process based on the financial metrics available. Here is a step-by-step analysis:
Step 1: Does the Fair Market Rent (FMR) of $930 cover the debt service on a $211,564 property?
Yes: The FMR of $930 is sufficient to cover the debt service on a property valued at $211,564, assuming typical financing terms. This indicates that the rental income from a Section 8 tenant would meet the financial obligations associated with owning the property.
No: If the FMR of $930 does not cover the debt service, then the landlord will need to consider alternative sources of income or financing options. It's important to calculate the exact debt service using the mortgage rate and term length to make an informed decision.
It Depends: This scenario applies if the landlord has unique financing conditions or the property requires significant repairs or maintenance that could affect the overall cost structure. In such cases, a detailed financial plan must be developed to ensure the FMR covers all costs.
Step 2: Is the market rent of $848 above, at, or below the FMR?
Above: If the market rent exceeds the FMR, the landlord can potentially earn more from non-Section 8 tenants, making the property more attractive. However, this also means that Section 8 tenants might find the rent too high, reducing their interest in the property.
At: When market rent equals the FMR, the landlord can expect steady income from both Section 8 and non-Section 8 tenants without any significant difference in rental rates. This balance can be beneficial for maintaining a diverse tenant base.
Below: If the market rent is below the FMR, the landlord can charge higher rents to Section 8 tenants, which is advantageous for covering expenses and earning a profit. However, this could lead to a higher vacancy rate among non-Section 8 tenants.
Step 3: Are 19.3% of residents renters and is the Days on Market (DOM) sufficient to indicate demand?
Yes: With 19.3% of residents being renters, there is a notable demand for rental properties in Napoleon, OH. The DOM being "N/A" suggests that either the data is incomplete or the market is moving quickly, indicating strong demand. Landlords can confidently pursue opportunities in this area.
No: If the percentage of renters is low or the DOM is excessively high, it signals weak demand. In such a case, landlords should reconsider investing in this area unless they have a strategy to attract tenants or manage vacancies effectively.
It Depends: This situation arises when the percentage of renters is marginal or the DOM data is inconclusive. Landlords must evaluate other factors such as the local economy, job market, and competition to gauge the potential success of their investment.
In summary, a landlord should buy in ZIP 43545 if the FMR sufficiently covers debt service, market rent is below or equal to FMR, and there is enough rental demand. Otherwise, it depends on additional considerations and strategies.
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.