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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $74,499 | 1.72% | A+ |
| 4BR | $1,360 | $102,804 | 1.32% | A |
| 5BR | $1,578 | $199,753 | 0.79% | D |
U.S. Census Bureau data (2024)
The analysis for ZIP code 43620 reveals a significant difference between Section 8 rental rates and market rents, impacting the potential gross yield for properties in this area.
Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $860 annually for fiscal year 2024, the gross yield for a property rented under Section 8 would be approximately 8.9%. This is calculated by taking the annual rent ($860 * 12 = $10,320) and dividing it by the median home value ($96,281).
In contrast, using the market rent figure of $541 per month from the Census ACS data, the gross yield drops to about 6.7%. This calculation is derived by multiplying the monthly rent by 12 ($541 * 12 = $6,492) and then dividing by the median home value ($96,281).
The higher gross yield of 8.9% associated with Section 8 rentals is theoretically more attractive. However, the reality of the situation in ZIP 43620 must also consider the high renter density of 70.9%, indicating a strong demand for rental properties. The N/A-day DOM (Days on Market) suggests that either rentals are quickly filled or there is limited turnover data available, which could imply stable occupancy rates for market-rented properties.
Given these factors, while the Section 8 program offers a higher gross yield, the actual market conditions favoring rental properties might mean that securing long-term tenants at market rates could be more feasible and less administratively burdensome. Landlords and small-portfolio investors should weigh the benefits of the higher yield against the potential operational challenges and market realities.
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.