Location: Canton-Massillon, OH | Metro: Akron, OH MSA
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 | $840 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $189,063 | 0.62% | D |
| 3BR | $1,400 | $261,149 | 0.54% | F |
| 4BR | $1,540 | $331,988 | 0.46% | F |
| 5BR | $1,786 | $395,451 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for zip code 44260 in Mogadore, OH, is based on the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the fiscal year 2024 is set at $1070, while the Census American Community Survey (ACS) indicates that the average market rent is $964. This represents a gap of $106, or approximately 11%.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to increase their yields. By participating in the Housing Choice Voucher program, landlords can secure rental income that is higher than the prevailing market rate, thus enhancing profitability. The higher FMR allows for a better rental income stream compared to the typical market conditions.
In Mogadore, OH, where only 14.0% of residents are renters and the median home value stands at $255,562, the opportunity to attract voucher tenants becomes particularly appealing. With a median income of $82,444, many residents might find it challenging to afford homes at market rates, making them ideal candidates for Section 8 vouchers. This dynamic creates a scenario where landlords can benefit from a steady, government-backed rental income without necessarily competing with the higher-end housing market.
The key advantage here is the ability to capitalize on a niche market that is underserved by the local rental supply. Since the FMR is higher than the actual market rent, landlords who offer units that qualify for vouchers can charge closer to the FMR, thereby increasing their revenue. This plays into the hands of investors looking for stable cash flows and a predictable return on investment.
However, it's important to note that the benefits come with certain responsibilities. Landlords must adhere to HUD standards and ensure that their properties meet the required quality and safety guidelines. Additionally, there may be some administrative overhead associated with managing voucher tenants, including rent certifications and inspections.
In conclusion, the gap between FMR and market rent in zip code 44260 makes it an attractive yield play for landlords and small-portfolio investors. The higher FMR allows for better rental income, aligning well with the local context of Mogadore, OH, where the rental market is relatively small and many residents could benefit from subsidized housing options.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.