Location: Columbiana County, 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 | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $800 | $90,029 | 0.89% | C |
| 2BR | $1,000 | $140,592 | 0.71% | D |
| 3BR | $1,290 | $205,211 | 0.63% | D |
| 4BR | $1,330 | $285,595 | 0.47% | F |
| 5BR | $1,543 | $344,771 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering the ZIP code 44460 in Salem, OH, might raise several valid concerns regarding the feasibility of investing in rental properties here. Let's address these points directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $860 (for zip FY 2024) cover the mortgage on a $182,908 home?
The Fair Market Rent (FMR) of $860 per month does not guarantee that it will fully cover the mortgage on a $182,908 home. To determine if the FMR can cover the mortgage, we need to consider the interest rate and the loan terms. Assuming a typical fixed-rate mortgage of 30 years and an average interest rate of around 5%, the monthly payment on such a home would be approximately $985. This amount exceeds the FMR by about $125 per month. Therefore, relying solely on the FMR to cover the mortgage would result in a shortfall. However, it's important to note that FMRs are set to ensure affordability and do not necessarily reflect the highest possible rent in the area. Landlords may find opportunities to charge slightly above the FMR, especially for well-maintained properties.
Objection 2: Is there enough renter demand at 28.6%?
The renter demand in ZIP 44460 stands at 28.6%. While this percentage is lower than some other areas, it still represents a significant portion of potential renters. The key factor here is whether the local economy supports sufficient job growth and stability to maintain this level of demand. Without specific economic indicators, we cannot definitively state that the demand will remain constant or increase. However, the current 28.6% suggests a moderate level of interest in renting, which could be attractive to investors looking for a stable market without extreme competition.
Objection 3: Will vouchers keep pace with $765 market rents?
Vouchers are designed to help low-income families afford housing, but their value is typically capped at a certain percentage of the FMR. In ZIP 44460, the market rent is estimated at $765. If the voucher program does not adjust its payments to match the market rents, landlords may face difficulties in covering operational costs and maintaining properties. According to the data, the voucher amount is likely to be less than the FMR, and thus below $860. This means that while vouchers can help offset some of the rent, they may not fully cover the $765 market rent. Investors should consider the possibility of supplementing voucher income with additional sources or ensuring that their properties are in high demand to justify slightly higher rents.
In conclusion, while ZIP 44460 presents challenges in terms of mortgage coverage and voucher adequacy, the moderate renter demand suggests a stable environment for investment. Careful financial planning and understanding of local economic trends are crucial for success.
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.