Section 8 Fair Market Rent (FMR) for ZIP 43914 - 2027

FY 2027 Fair Market Rent Rates

The analysis of the Section 8 cap rate for ZIP code 43914 reveals a complex picture due to the lack of specific market data. However, we can still provide a general overview based on the available information.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 43914 for fiscal year 2026 is set at $970 per month. This annualizes to $11,640 per year. Given that the market rent is currently not available, we cannot directly compare it to the FMR. Additionally, the median home value is also not specified, making it difficult to calculate an exact cap rate.

Despite these limitations, we can infer some implications regarding the gross yield. In a scenario where the market rent equals the FMR, the gross yield would be calculated based on the annualized FMR. The gross yield is the ratio of the annual rental income to the property's value. Without a specific median home value, we can only state that if a property were valued at, for example, $100,000, the gross yield would be 11.64%. This calculation assumes that the property's value is directly related to the rental income it generates under the FMR.

In a more realistic scenario, the market rent would typically exceed the FMR. If we assume a hypothetical market rent of $1,200 per month ($14,400 annually), the gross yield would increase accordingly. Using the same property value of $100,000, the gross yield would rise to 14.40%. This higher gross yield reflects a better return on investment compared to the FMR scenario.

The lack of specific market rent data and median home values makes it challenging to determine the exact cap rate for ZIP 43914. However, the implied gross yields suggest that relying solely on FMR rates would result in a lower return on investment compared to achieving market rents. Given the unspecified renter density and days on market (DOM), investors should consider the potential for achieving higher market rents when evaluating properties in this area.

Investors must also factor in the local rental market dynamics and property management costs to get a clearer picture of the net operating income (NOI). While we avoid quoting NOI percentages, the comparison between FMR-based and market rent-based gross yields provides a foundational understanding of potential returns in ZIP 43914.

Data Sources: FMR data from HUD (2027).

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.