Location: Sandusky County, OH | Metro: Erie County, OH HUD Metro FMR Area
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 | $940 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $199,458 | 0.62% | D |
| 3BR | $1,550 | $252,572 | 0.61% | D |
| 4BR | $1,730 | $291,071 | 0.59% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 44824, which encompasses Castalia, OH, and parts of Erie County, hinge on understanding the financial dynamics between the SAFMR (Small Area Fair Market Rent) and local market rents. For fiscal year 2026, the SAFMR for a two-bedroom apartment in this ZIP code is set at $1,070. This figure represents the maximum amount that the Section 8 program will reimburse landlords for rent.
In contrast, the local market rent for a similar two-bedroom unit, according to the Census ACS, is $717. This discrepancy highlights the potential financial benefits for landlords who accept Section 8 vouchers. However, it's important to note that the actual reimbursement a landlord receives depends on the tenant's portion of the rent and any applicable utility allowances.
The tenant's portion of the rent is generally determined by their income, with the expectation that they pay approximately 30% of their adjusted monthly income towards rent. If a tenant's income is low enough, their portion could be significantly less than the market rent, meaning the landlord would receive the remainder from the Section 8 program up to the SAFMR limit.
Utility allowances vary based on the location and can affect the total reimbursement. In ZIP 44824, these allowances are included in the SAFMR calculation but are not directly paid to the landlord. Instead, they are intended to cover the tenant's utilities and are part of the overall rent subsidy structure.
To illustrate, if a tenant's income dictates that they pay $300 towards rent, the Section 8 program would pay the difference between the tenant's portion and the SAFMR, which in this case would be $770. Therefore, the landlord would receive a total of $1,070 per month, even though the market rent is lower. This ensures that landlords receive a stable income that aligns with the SAFMR rather than the potentially lower local market rent.
The typical reimbursement gap or surplus in ZIP 44824 for a two-bedroom apartment is the difference between the SAFMR and the local market rent. Given the SAFMR of $1,070 and the local market rent of $717, landlords accepting Section 8 vouchers would see a surplus of $353 per month. This surplus compensates landlords for participating in the program and helps offset any additional administrative costs associated with renting to tenants with Section 8 vouchers.
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.