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 | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $149,950 | 0.67% | D |
| 3BR | $1,290 | $232,565 | 0.55% | F |
| 4BR | $1,350 | $271,798 | 0.5% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $860 for ZIP code 44609 (Sebring, OH) can sufficiently cover the mortgage on a home priced at $189,288. To address this concern, let's consider the typical monthly mortgage payment for a property of that value. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly principal and interest payment would be approximately $935. This calculation does not include property taxes, insurance, or maintenance costs, which would further increase the total monthly expense. Therefore, the FMR alone would not fully cover the mortgage payments.
The second objection relates to the level of renter demand, which stands at 14.6%. While this percentage is relatively low compared to national averages, it suggests that there is still a significant number of renters in the area. The lower demand could imply some competition among landlords, but it also indicates stability in the rental market. If the demand were significantly higher, it might suggest a bubble that could burst. At 14.6%, the rental market in Sebring appears to be steady and sustainable, though it requires careful tenant selection and management to ensure occupancy rates.
The final concern is whether housing vouchers will keep pace with the market rents, which are currently at $694. According to HUD guidelines, voucher amounts are adjusted annually based on changes in the local cost of living and rental market conditions. However, the data does not provide specific details on how much these adjustments might be. In general, voucher amounts tend to lag behind market rents, meaning landlords might need to supplement the difference or face challenges in finding suitable units for voucher holders. Given the current voucher amount of $694, it may not fully cover the market rent, requiring landlords to either accept a lower net income or seek alternative solutions to maintain profitability.
In conclusion, while investing in Sebring, OH, presents some challenges, such as the FMR not fully covering mortgage expenses and potential gaps between voucher amounts and market rents, the stable rental market and low competition indicate a solid foundation for investment. Careful planning and management are key to navigating these issues successfully.
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.