Section 8 Fair Market Rent (FMR) for ZIP 44691 - 2027

Investment Score for ZIP 44691

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$790
1 Bedroom	$880
2 Bedrooms	$1,130
3 Bedrooms	$1,370
4 Bedrooms	$1,600
5 Bedrooms	$1,856
6 Bedrooms	$2,079
7 Bedrooms	$2,245
8 Bedrooms	$2,357

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,130	$202,562	0.56%	F
3BR	$1,370	$268,837	0.51%	F
4BR	$1,600	$359,231	0.45%	F
5BR	$1,856	$429,321	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 44691 (Wooster, OH) #### Section 8 Voucher Dynamics In Wooster, OH (ZIP code 44691), the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1,080 per month for 2026. This amount represents 18.5% of the median household income in the area, which is $69,920. However, the actual median rent for a two-bedroom unit on Zillow is significantly higher at $199,789, translating to a monthly rent of approximately $1,665 based on a typical mortgage payment structure. The price-to-FMR ratio is 15.4x, indicating that actual rents are substantially above the FMR levels. This means that Section 8 voucher holders face significant constraints when trying to find suitable housing. The voucher amount may not cover the actual rent in the market, leading to difficulties in securing apartments. For example, a voucher holder with a two-bedroom voucher would have to find a landlord willing to accept $1,080, which is far below the market rate of $1,665. This disparity can result in a limited pool of available properties for voucher holders. #### Affordability & Renter Profile The population of Wooster is 44,344, with 27.4% of residents being renters. This indicates a relatively small but significant rental market. Given the occupancy rate of 93.2%, it suggests that the rental market is quite tight, with most units occupied. The median household income of $69,920 provides context for the affordability of housing. A two-bedroom apartment at the FMR level ($1,080) would represent about 18.5% of the median income, which is generally considered affordable. However, the actual median rent of $1,665 would consume nearly 30% of the median income, making it less affordable for many residents. Given the high price-to-FMR ratio and the tight occupancy rate, it is likely that the rental market is competitive. Landlords may prefer tenants who can pay market rates rather than those relying on vouchers. Consequently, the demand for affordable housing exceeds supply, creating a challenging environment for low-income renters. #### Investor Angle From an investor perspective, the ZIP code 44691 presents a mixed picture. While the market rent for a two-bedroom unit is $1,665, the FMR is only $1,080. If an investor is strictly focused on Section 8 vouchers, they will need to ensure that their rental properties are priced at or below the FMR levels to attract voucher holders. However, this pricing strategy may not be financially viable given the actual market conditions. To determine if the ZIP code is cash-flow positive at the FMR, we must consider the cost of acquisition and maintenance. The median home value for a two-bedroom property is $199,789. Assuming a typical mortgage rate of around 5%, the monthly mortgage payment would be approximately $1,065. This is close to the FMR of $1,080, leaving little room for profit unless the investor can manage costs effectively. Additionally, the high price-to-FMR ratio suggests that the market is overpriced relative to what the government considers fair, which could make it difficult to compete with non-voucher properties. The investment grade for this ZIP code would be moderate to low for Section 8-focused investors due to the high market rents and the limited number of voucher holders who can afford these properties. Investors might struggle to find enough tenants willing to pay the FMR, especially in a tight market where competition for units is fierce. #### Specific Actionable Insights 1. **Focus on Multi-Family Properties**: Given the tight market and high occupancy rates, investors should focus on multi-family properties rather than single-family homes. Multi-family units often have lower acquisition costs per unit and can offer economies of scale in terms of maintenance and management. For instance, a three-bedroom unit at $1,320 might be more attractive to families and could potentially fill more units compared to single-family homes. 2. **Consider Renovation Projects**: Since the actual market rent is much higher than the FMR, investors might consider purchasing older properties at a lower price and renovating them to meet the higher market standards. By doing so, they can potentially command higher rents and still remain competitive in the market. For example, a property purchased for $150,000 and renovated for $50,000 could be rented out for $1,665, providing a better return on investment than properties priced at the FMR. 3. **Partner with Local Agencies**: To increase the likelihood of finding voucher holders, investors should partner with local housing agencies and social service organizations. These partnerships can help in marketing properties specifically to voucher holders and ensuring compliance with HUD regulations. Additionally, such collaborations can provide valuable insights into the local rental market dynamics and tenant preferences. #### Bottom Line For investors focusing exclusively on Section 8 vouchers, the ZIP code 44691 (Wooster, OH) is not recommended. The high price-to-FMR ratio and tight rental market make it challenging to achieve positive cash flow while adhering to voucher limits. Instead, investors should consider a diversified approach that includes both market-rate and voucher-friendly units, or look into areas with a lower price-to-FMR ratio. The bottom line is to **Skip** this ZIP code for Section 8-focused investments and **Hold** or **Buy** in a broader context if other market factors align favorably.

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.