Location: Muskingum County, OH | Metro: Muskingum County, OH
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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $135,267 | 0.74% | D |
| 3BR | $1,350 | $199,009 | 0.68% | D |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 43771, centered around Philo, Ohio, reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the Census ACS data indicates that the current market rent stands at $852. This creates a gap of $118, or approximately 13.8%, between what voucher tenants can pay and the actual market rate.
In this scenario, where the FMR exceeds the market rent, properties in ZIP 43771 become attractive yield plays for investors. By accepting Section 8 tenants, landlords can secure rental income that is higher than the typical market rate. Given that only 29.1% of residents in Philo are renters, there is less competition for rental units, making it easier to fill vacancies with voucher holders. Additionally, the median home value in Philo is $162,655, which suggests a stable housing market. However, the median income of $52,708 highlights the need for affordable housing options, further justifying the appeal of Section 8 vouchers.
The higher FMR compared to the market rent means that landlords can receive payments closer to the $970 mark, even if the market rate is lower. This discrepancy benefits investors looking to maximize their returns without setting rents above what voucher holders can afford. In essence, this ZIP code presents a unique situation where the government's willingness to pay more than the market rate creates an advantageous position for those who can accommodate voucher tenants.
For landlords in Philo, Ohio, this analysis underscores the potential financial benefits of participating in the Section 8 program. It provides a clear path to achieving higher yields than the local rental market might otherwise offer, all while serving a community with a demonstrated need for affordable housing solutions.
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.