Location: Noble County, OH | Metro: Monroe County, OH
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 43788 reveals a clear disparity between the federal market rent (FMR) and the actual market rent, which significantly impacts the gross yield for potential investments.
Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1,040 per month for fiscal year 2026, the annualized income would be $12,480. In contrast, the Census ACS reports a market rent of $642 per month, equating to an annualized income of $7,704. The median home value in ZIP 43788 is $175,700.
To derive the gross yield, we divide the annual rental income by the property value. For the FMR scenario, the gross yield is calculated as follows: $12,480 / $175,700 = 7.1%. Conversely, using the market rent figure, the gross yield is $7,704 / $175,700 = 4.4%.
The gross yield based on the FMR is significantly higher, but it's important to consider the practical implications. With a renter density of only 11.4%, the likelihood of maintaining a steady stream of tenants at the FMR rate is low. Additionally, the N/A-day DOM (days on market) suggests either a very competitive or a very slow rental market, making it difficult to predict how quickly a property can be rented out at the higher rate.
Given these factors, the gross yield of 4.4% derived from the market rent appears more realistic for most landlords and small-portfolio investors. This lower yield reflects the actual conditions of the rental market in ZIP 43788, where securing a tenant might require offering a rent closer to the market rate rather than the FMR.
Investors should use these figures to inform their decision-making process, understanding that while the FMR offers a higher theoretical gross yield, the actual performance of their investment is likely to align more closely with the market rent scenario due to the local rental dynamics.
Data Sources: FMR data from HUD (2027). 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.