Location: Knox County, OH | Metro: Ashland County, OH
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 | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $206,813 | 0.48% | F |
| 3BR | $1,330 | $262,352 | 0.51% | F |
| 4BR | $1,430 | $321,675 | 0.44% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 44842, which includes Loudonville, OH, and parts of Ashland County, are defined by the SAFMR (Small Area Fair Market Rent). For a two-bedroom apartment, the SAFMR for FY 2026 is set at $970. This figure is specific to this ZIP code, reflecting the unique housing market conditions here.
However, the local market rent for a two-bedroom unit, according to the Census ACS, is significantly lower at $566. This discrepancy highlights the financial dynamics landlords face when participating in the Section 8 program. Here’s a breakdown of what a landlord can expect:
The tenant is responsible for paying 30% of their adjusted income toward rent. If we assume an average household income eligible for Section 8, this would mean the tenant's portion could range widely but is typically around $400-$500 per month. For simplicity, let’s use $450 as an example.
The remaining amount, which covers the difference between the tenant's payment and the SAFMR, is subsidized by the government. In our example, this would be $970 - $450 = $520. Additionally, there are utility allowances that vary based on the number of bedrooms and the season. For a two-bedroom apartment, these allowances might add another $200-$300 to the reimbursement, depending on the specifics of the voucher and the time of year.
To illustrate, if the utility allowance is $250, the total reimbursement to the landlord would be $450 (tenant contribution) + $520 (government subsidy) + $250 (utility allowance) = $1220 per month. This exceeds the local market rent of $566, leaving a surplus for the landlord.
The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 44842 is thus calculated by subtracting the local market rent from the total reimbursement. In this case, it would be $1220 - $566 = $654. This surplus represents additional revenue above the local market rate, making Section 8 participation financially attractive for landlords in this area.
It’s important to note that while the SAFMR is specific to ZIP 44842, the local market rent and tenant contributions are variable and depend on individual circumstances. Nonetheless, the financial advantage of receiving a higher reimbursement compared to the local market rent is clear and consistent.
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.