Location: Youngstown-Warren, OH | Metro: Youngstown-Warren, 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 | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $191,171 | 0.53% | F |
| 3BR | $1,290 | $305,133 | 0.42% | F |
| 4BR | $1,370 | $389,378 | 0.35% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering North Jackson, OH (ZIP 44451) might have several concerns regarding the feasibility of renting out properties under Section 8. Here's a direct look at those concerns with the relevant data.
Objection 1: Will Fair Market Rent (FMR) of $860 for the fiscal year 2024 cover the mortgage on a $281,280 home?
The FMR of $860 is set by HUD to reflect the average cost of decent housing in an area. However, whether this amount covers the mortgage on a $281,280 home depends on the interest rate and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly principal and interest payment would be approximately $1,490. This means that the FMR does not cover the mortgage payment alone, indicating a need for careful financial planning and possibly a down payment or other sources of income to bridge the gap.
Objection 2: Is there enough renter demand at 22.3%?
The rental demand in ZIP 44451 is relatively low at 22.3%. This percentage represents the proportion of households that are renters. While this figure suggests a smaller pool of potential tenants compared to areas with higher percentages, it does not tell the whole story. The total number of households in the area is also a critical factor. If the total population is substantial, even a lower percentage can translate into a significant number of renters. Moreover, the stability and reliability of Section 8 tenants can outweigh the lower demand in some cases.
Objection 3: Will vouchers keep pace with $740 market rents?
The voucher amount is typically adjusted annually based on HUD guidelines and local housing market conditions. Given that the current FMR is $860, which is above the $740 market rent, it's reasonable to expect that vouchers will generally cover the typical market rent. However, the exact amount a voucher will cover can vary. It's important to note that while the FMR is higher, landlords must ensure that their rent requests are justified and fall within HUD's acceptable range to avoid disqualification. Vouchers are designed to help low-income families afford decent housing, so keeping rents close to the FMR but within reason ensures compliance and participation in the program.
In conclusion, while the data provides insight into the financial and market dynamics of ZIP 44451, it's crucial for investors to consider additional factors such as local economic trends, property management costs, and the specifics of individual properties before making a decision. The numbers suggest a challenging but potentially rewarding investment opportunity when approached with caution and thorough research.
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.