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 | $770 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $146,383 | 0.73% | D |
| 3BR | $1,370 | $206,364 | 0.66% | D |
| 4BR | $1,460 | $270,409 | 0.54% | F |
| 5BR | $1,694 | $316,949 | 0.53% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 43614 in Toledo, OH, provides a detailed insight into potential investment returns for landlords and small-portfolio investors. Based on the data provided, the Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is $950 per month, while the Zillow Observed Rental Index (ZORI) indicates a market rent of $1,142 per month. The median home value in this area is $199,500.
To determine the gross yield, we first annualize the rental incomes. For the FMR scenario, the annualized rent for a 2-bedroom unit is $11,400 ($950 x 12 months), resulting in a gross yield of approximately 5.72% when divided by the median home value ($11,400 / $199,500). In contrast, using the ZORI market rent, the annualized income would be $13,704 ($1,142 x 12 months), leading to a gross yield of about 6.87% ($13,704 / $199,500).
Given the 40.7% renter density in ZIP 43614, it's important to consider the stability of tenant occupancy. A lower vacancy rate suggests that there is a consistent demand for rental properties, making the ZORI-based gross yield of 6.87% more likely to be realized. Additionally, the average Days on Market (DOM) of 12 days indicates that properties are rented quickly, further supporting the higher gross yield scenario.
In conclusion, while the FMR-based gross yield of 5.72% is a conservative estimate, the market conditions in ZIP 43614 suggest that the more realistic gross yield for an investment property would be closer to the ZORI-based figure of 6.87%. This higher yield aligns with the strong rental market and quick turnover rates observed in the area.
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.