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 | $940 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $222,569 | 0.59% | F |
| 3BR | $1,670 | $284,515 | 0.59% | F |
| 4BR | $1,780 | $387,302 | 0.46% | F |
| 5BR | $2,065 | $491,710 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 43617, located in Toledo, Ohio, presents a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for FY 2024 is set at $1070, while the actual market rent based on Census ACS data stands at $1464. This creates a notable gap of $394, or approximately 26.8%, between the FMR and the market rent.
Given that the FMR is lower than the market rent, landlords should be aware of the potential costs associated with housing voucher tenants. While the program ensures timely payments and a stable source of income, the rental rate is fixed at $1070, which is below the open-market rate. This means that landlords will earn less per unit compared to renting out properties at the market rate of $1464. However, the stability and security of having guaranteed payments can offset some of these costs, especially considering the low percentage of renters in the area, which is only 10.2%.
Toledo's median home value is $326,534, and the median household income is $127,019. These figures provide context for the economic landscape in which landlords operate. With a median income that is relatively high for the area, landlords might find that voucher tenants represent a segment of the population that would otherwise struggle to afford decent housing. By participating in the Section 8 program, landlords can contribute to the community's well-being while also ensuring a steady stream of income.
Despite the gap, the Section 8 program offers a reliable tenant pool, reducing the risk of vacancy and non-payment. Landlords must weigh the benefits of guaranteed payments against the lower rental rate. Additionally, the maintenance standards required by the program ensure that the property remains in good condition, potentially leading to higher yields over time as the property's value increases.
In conclusion, while the FMR of $1070 is significantly lower than the market rent of $1464 in ZIP 43617, the Section 8 program provides a stable and secure investment option for landlords. The economic context of Toledo, with its high median home value and income levels, supports the idea that voucher tenants are an important part of the local housing ecosystem.
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.