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 | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $143,402 | 0.71% | D |
| 3BR | $1,320 | $208,370 | 0.63% | D |
| 4BR | $1,400 | $294,568 | 0.48% | F |
| 5BR | $1,624 | $338,530 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 44512 (Boardman, OH) provides insight into potential investment returns under different rental scenarios. Using the Fair Market Rent (FMR) for a two-bedroom unit set at $860 per month for fiscal year 2024, the annualized income would be $10,320. This translates to an implied gross yield of approximately 5.25% when compared to the median home value of $196,815.
In contrast, if the market rent, known as the Zillow Observed Rent Index (ZORI), of $936 per month is considered, the annualized income would be $11,232. The implied gross yield here is about 5.71%, slightly higher than the FMR scenario.
To determine which scenario is more realistic, consider the local rental market dynamics. With a renter density of 33.0%, there is a moderate level of demand for rental properties. Additionally, the Days on Market (DOM) figure of 41 days suggests that rental units are typically occupied relatively quickly, indicating a stable rental environment.
The FMR scenario reflects government-set limits on what tenants can pay, often leading to lower rental incomes. However, the stability provided by Section 8 contracts might offset the lower yield, making it a reliable choice for investors seeking consistent cash flow.
The ZORI scenario represents the average market rent and could potentially offer higher returns. Yet, it requires landlords to manage the risk of fluctuating tenant populations and the possibility of facing vacancies, which could impact overall profitability.
Given the 41-day DOM, the market appears to favor quick occupancy, suggesting that landlords might lean towards achieving closer to market rents. However, the moderate renter density indicates that there is also a substantial owner-occupied population, meaning that Section 8 tenants could still represent a significant portion of the rental market.
Conclusion: While the ZORI-based gross yield of 5.71% is higher than the FMR-based yield of 5.25%, the stability and predictability of Section 8 rents should be factored into investment decisions. Investors must weigh the benefits of higher yields against the reliability and ease of management associated with Section 8 contracts.
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.