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 | $760 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $137,874 | 0.77% | D |
| 3BR | $1,350 | $224,688 | 0.6% | D |
| 4BR | $1,440 | $284,647 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 43619, Northwood, OH, reveals an interesting scenario when comparing the Federal Market Rent (FMR) to the market rent. For a two-bedroom property, the annualized FMR is $970 per month, which translates to an annual income of $11,640. The median home value in the area is $177,748. Using these figures, the implied gross yield for the FMR scenario can be calculated as follows:
To find the gross yield, divide the annual income by the property value:
$11,640 / $177,748 = 0.0655 or 6.55%
This represents the potential gross yield if the property were rented at the FMR rate. However, the market rent for a two-bedroom unit is lower at $899 per month, resulting in an annual income of $10,788. Applying the same calculation:
$10,788 / $177,748 = 0.0607 or 6.07%
The gross yield based on the market rent is slightly lower than that based on the FMR. Given the 21.0% renter density in the area, it's important to consider the likelihood of securing a tenant under the Section 8 program versus finding a market renter. The N/A-day Days on Market (DOM) suggests that there might be limited data on how quickly properties are rented in this area, but with a lower renter density, landlords should expect slower turnover rates.
The FMR scenario provides a higher gross yield, making it more attractive on paper. However, the reality of Section 8 tenancy involves additional administrative work and compliance with HUD regulations. The market rent scenario, while offering a slightly lower gross yield, may present fewer complications and faster occupancy times due to the broader pool of potential tenants.
In conclusion, while the FMR offers a higher gross yield at 6.55%, the market rent scenario at 6.07% is likely more realistic given the lower renter density and the lack of clear data on rental speed. Landlords and small-portfolio investors must weigh the benefits of a higher yield against the practicalities of managing Section 8 properties.
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.