Location: Knox County, OH | Metro: Holmes 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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $298,524 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 44628 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $1,020, while the Census ACS reports the market rent as $1,031. This creates a gap of $11, or approximately 1.07%, where the market rent slightly exceeds the FMR.
When the FMR is lower than the market rent, as is the case here, it suggests that landlords accepting housing vouchers may face a financial disadvantage. Specifically, they would be renting out their properties at a rate below what the open market could potentially offer, thereby reducing their potential rental income. In ZIP 44628, where only 19.0% of residents are renters and the median home value is $272,532, landlords might prefer higher-paying tenants who can afford the market rate of $1,031 per month.
The median income in ZIP 44628 is $61,518, which is an important consideration when evaluating the financial health of potential voucher tenants. Given the relatively low percentage of renters and the higher median home values, landlords should weigh the benefits and drawbacks of accepting Section 8 vouchers. While vouchers ensure a steady stream of income, the lower rate compared to the market could result in a reduced yield on investment properties.
To summarize, the gap between FMR and market rent in ZIP 44628 highlights the need for landlords to carefully consider the financial implications of accepting housing vouchers. With the FMR at $1,020 and the market rent at $1,031, landlords must decide whether the guaranteed payments from voucher tenants justify the slight reduction in monthly rental income relative to the open market. This decision should also take into account the broader economic context of the area, including the median income and home values.
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.