Location: Akron, OH | Metro: Akron, OH MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 44325 reveals some critical insights for landlords and small-portfolio investors. With the annualized Fair Market Rent (FMR) for a 2-bedroom apartment set at $1040 (for fiscal year 2024), the gross yield can be calculated based on the median home value, which unfortunately is not available for this ZIP code. However, the absence of the median home value does not preclude us from making an informed assessment.
To derive the gross yield, we would typically divide the annual rental income by the median home value. In this case, the annual rental income for a 2BR unit under Section 8 would be $12,480 ($1040 x 12 months). Without the median home value, we cannot provide a precise gross yield figure; however, it is evident that the yield would be relatively low compared to market rents, which are also currently unavailable for ZIP 44325.
When considering the market rent scenario, again, the lack of specific data makes it challenging to provide a definitive gross yield. But it's safe to assume that market rents would generally exceed the Section 8 FMR, leading to a higher gross yield for landlords willing to operate outside the Section 8 program.
The renter density and days on market (DOM) are also crucial factors. Given the unspecified renter density percentage and the unprovided DOM figure, it is difficult to determine how quickly units might be leased. However, a higher renter density usually indicates a more favorable leasing environment, potentially reducing the DOM and increasing the likelihood of steady rental income.
In conclusion, while the exact gross yields cannot be stated due to missing data, it is clear that the Section 8 program offers a stable but lower rental income compared to market rates. For landlords, the decision to participate in Section 8 versus renting at market rates should be based on the balance between stability and yield. If the median home value were known, a direct comparison could be made, but for now, the higher potential gross yield from market rents is more realistic for those seeking to maximize returns.
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.