Location: Springfield, OH | Metro: Springfield, OH MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 45319 provides insight into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $860 annually, while the market rent based on Census ACS data is $817 per month.
To calculate the implied gross yield, we first need to annualize the market rent. This comes to $9,804 ($817 x 12 months) per year. However, the median home value is not available, which complicates the direct calculation of the cap rate since it requires knowing the property value. Nonetheless, we can still compare the two rent figures to understand the relative attractiveness of Section 8 versus market rent.
The FMR of $860 per month implies an annual rental income of $10,320. Comparing this to the annualized market rent of $9,804 shows that the Section 8 rent is higher by $516 annually. This suggests that for a landlord who values stability over potentially higher market rents, Section 8 could offer a better gross yield.
Given the renter density of 28.3%, it's important to consider the demand for rental properties in ZIP 45319. With a relatively low renter population, landlords might face challenges in filling units, especially if they are not part of the Section 8 program. The lack of data on the Days on Market (DOM) makes it difficult to assess how quickly units are typically leased, but a lower renter density generally indicates slower leasing times.
In conclusion, while the exact cap rate cannot be calculated without the median home value, the higher monthly FMR of $860 compared to the market rent of $817 suggests that Section 8 properties could provide a slightly better gross yield. Considering the 28.3% renter density, Section 8 participation might also offer a more stable tenant base, reducing the risk of vacancies and associated costs. For investors, these factors should be weighed against the administrative requirements and potential limitations of participating in the Section 8 program.
Data Sources: FMR data from HUD (2027). 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.