Location: Ashland County, OH | Metro: Columbus, 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 | $730 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $135,792 | 0.77% | D |
| 3BR | $1,370 | $219,330 | 0.62% | D |
| 4BR | $1,600 | $301,164 | 0.53% | F |
| 5BR | $1,856 | $407,900 | 0.46% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,050 for ZIP 44903 (Mansfield, OH) in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $205,585. Current mortgage rates vary, but assuming a typical rate of around 4.5% for a 30-year fixed mortgage, the monthly payment on a loan of this size would be approximately $1,025. While this is close to the FMR, it does not include additional costs such as property taxes, insurance, maintenance, and potential vacancies. These extra expenses could significantly impact the profitability of the investment.
The investor may also be concerned about the level of renter demand in ZIP 44903, which stands at 26.4%. This figure suggests that a little over a quarter of the housing units are occupied by renters, which is a relatively modest proportion. However, this percentage is consistent with the broader national trend, indicating that there is a stable demand for rental properties. Moreover, the median home price in the area is approximately $199,902, suggesting that many residents may prefer renting due to affordability concerns. The median rent is around $933 per month, slightly below the FMR, which indicates a competitive market for rental properties.
A final concern could be whether housing vouchers will keep pace with market rents, currently averaging $812. According to recent trends, voucher usage has been increasing in some areas, but specific data for ZIP 44903 is not readily available. It is important to note that voucher amounts are often adjusted annually based on local market conditions. Therefore, while we cannot definitively state that vouchers will cover the entire market rent, the likelihood is higher when the average market rent is closer to the FMR. Given the FMR is $1,050, vouchers should provide a reasonable subsidy to tenants, although they may not fully cover the market rent.
In summary, while the FMR is nearly sufficient to cover mortgage payments, it is crucial to account for additional costs. The moderate renter demand percentage is balanced by a competitive market, and while we lack specific data on voucher trends for ZIP 44903, the general adjustment mechanisms suggest they will provide a significant subsidy. These points should be carefully considered before making an investment decision.
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.