Location: Youngstown-Warren, OH | Metro: Cleveland, OH HUD Metro FMR Area
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 | $740 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $257,704 | 0.39% | F |
| 3BR | $1,290 | $293,056 | 0.44% | F |
| 4BR | $1,390 | $344,234 | 0.4% | F |
| 5BR | $1,612 | $369,837 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 44062, located in Middlefield, Ohio, reveals interesting insights into potential investment opportunities. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $920 per month. When annualized, this figure amounts to $11,040 per year. Given the median home value in the area is $288,960, the implied gross yield for a Section 8 rental property would be approximately 3.82%. This calculation is derived by dividing the annual rent ($11,040) by the median home value ($288,960).
In contrast, the market rent for a two-bedroom apartment, based on Census ACS data, stands at $794 per month. Annualizing this market rent gives us an annual income of $9,528. Using the same median home value, the implied gross yield for a market-rent scenario would be about 3.30%, calculated by dividing the annual market rent ($9,528) by the median home value ($288,960).
The gross yield comparison between the Section 8 scenario and the market-rent scenario clearly shows that the Section 8 program offers a higher yield. However, the decision on which scenario is more realistic hinges on several factors, including the local rental market dynamics and the percentage of renters in the area. With a renter density of 18.3%, it suggests that a significant portion of the population in Middlefield, Ohio, owns their homes rather than renting. This could indicate that demand for rental properties might be lower, making the market-rent scenario potentially more reflective of the actual rental environment.
Moreover, the N/A-day DOM (days on market) implies that there's either insufficient data or a steady demand for rentals, which doesn't provide a clear picture of how quickly properties are leased. Despite this lack of clarity, the higher gross yield offered by Section 8 properties is undeniable. For landlords and small-portfolio investors looking to secure a stable income stream, the Section 8 program presents a compelling option, albeit with slightly higher administrative overhead compared to market-rate rentals.
In conclusion, while the Section 8 program provides a higher gross yield at 3.82% compared to the market-rent yield of 3.30%, the actual choice should consider the local rental market conditions and the specific goals of the investor. For those prioritizing steady, government-backed rental income, Section 8 remains a strong consideration.
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.