Location: Mansfield, OH | Metro: Mansfield, OH MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
The analysis of the Section 8 program in ZIP code 44901 centers around the Federal Market Rent (FMR) figure of $860 for fiscal year 2024. Given that the market rent is currently unavailable, we cannot calculate an exact percentage gap between the FMR and the market rate. However, it is important to understand the implications of this FMR figure.
If the FMR exceeds the market rent, which is the case here due to the unavailability of the latter, landlords can leverage the Section 8 program to ensure a steady, predictable rental income. This makes the ZIP code a prime location for a yield play, where the focus is on generating consistent cash flow rather than capital appreciation. Tenants with housing vouchers provide a reliable source of income, backed by the government, which reduces the risk of vacancies and delinquencies.
On the other hand, if the FMR were lower than the market rent, accepting Section 8 tenants would mean foregoing the opportunity to charge open-market rates. The cost of housing voucher tenants below these rates could be seen as a trade-off for the security of guaranteed payments and the stability they bring to the rental market. Landlords must weigh this against the potential for higher rents from non-voucher tenants, who might be less reliable in terms of payment consistency.
In ZIP 44901, the specific context of the rental market—where the percentage of renters, median home value, and median income figures are currently unavailable—highlights the importance of relying on the FMR as a benchmark. While the lack of precise market data complicates a full comparative analysis, the FMR serves as a crucial guideline for setting reasonable rent expectations under the Section 8 program.
Landlords should consider the FMR of $860 as a foundational element in their pricing strategy for Section 8 units. It ensures compliance with HUD regulations while providing a stable income stream. For small-portfolio investors, this can be particularly advantageous, offering a predictable financial outcome that aligns with the conservative nature of their investment approach.
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.