Location: Canton-Massillon, OH | Metro: Canton-Massillon, 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 | $700 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $80,155 | 1.25% | A |
| 3BR | $1,270 | $99,525 | 1.28% | A |
| 4BR | $1,360 | $123,430 | 1.1% | B |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 44703, located in Canton, Ohio, revolves around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $860, while the Zillow Observed Rent Index (ZORI), which reflects the current market conditions, stands at $822. This means that the FMR is $38 higher than the market rent, representing a 4.6% premium.
This gap makes properties in ZIP 44703 attractive for landlords and small-portfolio investors looking to leverage the yield potential of Section 8 voucher tenants. The reason is straightforward: voucher tenants pay a portion of their income towards rent, and the government covers the rest up to the FMR. In Canton, where 67.2% of residents are renters, and the median income is $31,957, the demand for affordable housing is significant. With a median home value of $94,078, many residents find it challenging to afford homeownership, making rental properties crucial.
The higher FMR compared to the market rent means that landlords can potentially earn more than what the open market offers. For instance, if a landlord rents out a property at $860 per month, they will receive the full amount guaranteed by the voucher program, whereas renting it at the market rate of $822 would result in lower monthly income. This scenario is particularly beneficial in an area with high renter demographics and relatively low median incomes.
However, it's important to note that accepting Section 8 tenants comes with its own set of challenges. Landlords must adhere to HUD regulations, which can include regular inspections and maintenance requirements. Additionally, the administrative process of becoming a Section 8 landlord can be time-consuming. Despite these hurdles, the financial benefits of the FMR being above the market rent make it a compelling strategy for maximizing yield in Canton, Ohio.
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.