Location: Columbiana County, OH | Metro: Columbiana County, OH
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 | $820 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,360 |
| 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 | $1,060 | $125,264 | 0.85% | C |
| 3BR | $1,360 | $161,090 | 0.84% | C |
| 4BR | $1,390 | $192,053 | 0.72% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 44413, East Palestine, OH, provides a clear snapshot of potential investment returns. To calculate the implied gross yield, we must first consider the Federal Market Rent (FMR) and the market rent figures for a two-bedroom property.
Using the annualized 2BR FMR of $1,030, the total annual rental income would be $12,360. Given the median home value of $135,761, the implied gross yield based on the FMR is approximately 9%. This calculation is derived from dividing the annual rental income by the median home value.
In contrast, using the market rent figure of $834, the total annual rental income would be $9,968. The implied gross yield based on the market rent is approximately 7.3%, calculated similarly by dividing the annual rental income by the median home value.
When considering the realistic scenario for this area, it's important to note the renter density of 24.2%. This relatively low percentage suggests that there is a smaller pool of potential tenants who might be interested in renting through the Section 8 program. However, the lack of data regarding days on market (DOM) means we cannot accurately assess how quickly properties are rented out or the competition among landlords for Section 8 tenants.
The gross yield based on the FMR is higher at 9%, indicating a potentially better return on investment for landlords willing to participate in the Section 8 program. This yield assumes that the property can command the higher FMR rate, which may not always be possible due to the limited number of renters and the availability of other affordable housing options. On the other hand, the gross yield based on the market rent is lower at 7.3%, reflecting the current average rental rates in the area.
Given the data, the 9% gross yield derived from the FMR is more optimistic but may not reflect the true market conditions. Landlords should prepare for a yield closer to the 7.3% based on the market rent, especially considering the lower renter density. While the FMR scenario offers a higher potential return, the actual outcome could be closer to the market rent scenario due to the constraints of the local rental market.
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.