Location: Knox County, OH | Metro: Mansfield, 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 | $820 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $198,626 | 0.58% | F |
| 3BR | $1,510 | $280,075 | 0.54% | F |
| 4BR | $1,680 | $372,791 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Butler, OH (ZIP 44822) might raise several valid points regarding the feasibility of investing in the area. Let's address these concerns using the available data.
Objection 1: Will FMR $950 (zip FY 2024) cover the mortgage on a $258,031 home?
The Fair Market Rent (FMR) for ZIP 44822 is projected to be $950 per month in fiscal year 2024. To determine if this amount can cover a mortgage, we need to consider the typical interest rates and loan terms. Assuming a fixed-rate mortgage at an average rate of 4.5%, the monthly payment on a $258,031 home would be approximately $1,300, based on a 30-year term. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of around $350 per month. An investor would need to factor in this gap when assessing the profitability of the investment.
Objection 2: Is there enough renter demand at 19.8%?
The rental vacancy rate in ZIP 44822 is 19.8%. This figure is higher than the national average, which typically hovers around 7%. A high vacancy rate suggests that there may not be sufficient demand for rental properties in the area. However, it also indicates potential opportunities for investors who can offer competitive rental terms or improve property conditions to attract tenants. The key here is to understand the local market dynamics and identify niches where demand is stronger, such as student housing or low-income rentals.
Objection 3: Will vouchers keep pace with $947 market rents?
The Housing Choice Voucher program aims to help low-income families afford decent, safe, and sanitary housing. In ZIP 44822, the market rent is $947. While the voucher program often covers a significant portion of rent, it rarely matches the full market price. According to recent trends, the average voucher payment is around $600-$700 per month, which would fall short of covering the full market rent in Butler. Investors should consider the possibility of accepting vouchers but also prepare for lower net incomes compared to market rents.
In conclusion, while ZIP 44822 presents some challenges for real estate investment, particularly in terms of rental demand and financial support through vouchers, it still offers opportunities for those willing to carefully evaluate the local market and adjust their investment strategies accordingly.
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.