Location: Toledo, 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 | $720 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $89,466 | 1.12% | B |
| 3BR | $1,280 | $56,210 | 2.28% | A+ |
| 4BR | $1,360 | $70,126 | 1.94% | A+ |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 43604 in Toledo, OH, reveals a rental market where HUD's Fair Market Rent (FMR) for FY 2024 is set at $860. This figure contrasts sharply with the actual market rent, which stands at $1,625 according to ZORI (Zillow Observed Rent Index). Given this discrepancy, landlords can expect that voucher tenants will only cashflow with premium units, meaning those properties that offer higher-end amenities or are in superior locations.
To further understand the investment potential, consider the median home value in ZIP 43604, which is $63,243. The rent-to-price ratio can be calculated by dividing the market rent ($1,625) by the median home value ($63,243), resulting in approximately 2.57%. This low ratio indicates that the rental income generated from a property in this area would not significantly contribute to covering the cost of purchasing a home, suggesting that the primary focus should be on rental income rather than leveraging the property value for residential purchase.
The dynamics between days on market (DOM) and the percentage of price cuts are not applicable in this scenario since these metrics pertain more to the buying market. However, they do highlight the importance of understanding local real estate trends to make informed investment decisions. In the context of Section 8 investing, the stability of the tenant base and the predictability of government-backed vouchers provide a reliable source of income, making it an attractive option for small-portfolio investors.
In conclusion, the strongest angle for Section 8 investors in ZIP 43604 is stability. While cashflow may be limited to premium units, the consistent income provided by the government vouchers ensures a steady and predictable revenue stream, ideal for those seeking a stable investment strategy.
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.