Section 8 Fair Market Rent (FMR) for ZIP 44735 - 2027

FY 2027 Fair Market Rent Rates

The analysis for ZIP code 44735 in Unknown, Ohio, reveals some limitations due to incomplete data. However, we can still provide a basic overview using the available information.

The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 44735 for fiscal year 2024 is set at $910 per month. This figure represents the annualized rental income a landlord could expect from a Section 8 tenant in this area. The median home value and market rent for the region are currently not available, which makes it difficult to provide an exact comparison between Section 8 rents and market rents. Nevertheless, the implied gross yield for a property rented under Section 8 can be calculated based on the FMR.

To estimate the gross yield, we need to consider the total annual rental income and the property value. Assuming a median home value is needed to calculate the gross yield, let's use the FMR to infer a potential range. If we assume a median home value similar to the national average, which was around $267,000 in 2021, the gross yield would be approximately 4.2%. This is calculated by taking the annual FMR ($910 x 12 = $10,920) and dividing it by the assumed property value ($267,000).

However, since the actual median home value and market rent for ZIP 44735 are not provided, this calculation serves only as a hypothetical example. The lack of market rent data means that a direct comparison to market yields cannot be made accurately. Therefore, the 4.2% gross yield derived from the FMR should be considered a baseline scenario, rather than a definitive figure.

The renter density and days on market (DOM) for the area are also not specified, which are crucial metrics for assessing the realism of the gross yield estimates. Renter density indicates how many people in the area are likely to be renting, while DOM shows how quickly properties are typically rented out. Without these figures, it's challenging to determine whether the Section 8 gross yield is more or less realistic compared to market yields.

In conclusion, while the Section 8 FMR provides a clear monthly rental rate of $910 for a 2-bedroom unit, the absence of key data points such as median home values, market rents, renter density, and DOM limits our ability to provide a comprehensive cap-rate analysis for ZIP 44735. Investors should gather additional local market data to refine their investment calculations.

Data Sources: FMR data from HUD (2027).

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.