Location: Ashtabula County, 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 | $910 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $271,121 | 0.46% | F |
| 3BR | $1,610 | $325,088 | 0.5% | F |
| 4BR | $1,740 | $370,647 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 44086, located in Thompson, OH, centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1200, whereas the Census American Community Survey (ACS) reports the market rent at $1,049. This creates a significant gap of $151, which translates to approximately a 14.4% difference.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to maximize their yields. The higher FMR means that the government will subsidize a larger portion of the rent for eligible voucher tenants. Consequently, landlords can secure a steady stream of income without the risk of vacancy, which is particularly beneficial given the low rental population in Thompson, OH—only 6.7% of residents are renters.
The median home value in Thompson is $289,918, and the median income is $92,143. These figures indicate that homeownership is the predominant form of housing in the area, further underscoring the importance of the Section 8 program for maintaining a diverse housing market. With the FMR being higher than the market rent, voucher tenants can afford to live in properties that are priced slightly above the average market rate, providing landlords with an opportunity to achieve higher rental yields while still offering affordable housing options.
Investors should be aware that although the higher FMR offers a yield advantage, there are administrative costs associated with participating in the Section 8 program. These include initial and ongoing inspections, compliance with housing quality standards, and managing the paperwork required for the program. Despite these costs, the financial benefits of receiving a guaranteed rent payment at a rate above the local market average make the Section 8 program an attractive investment option in ZIP code 44086.
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.