Location: Preble County, OH | Metro: Preble 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 | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $181,177 | 0.92% | C |
U.S. Census Bureau data (2024)
The median income in ZIP code 45321 stands at $69,135, which contrasts sharply with the market rate for rent at $1,012 per month according to the latest Census ACS data. This suggests that the typical household might find it challenging to cover their housing costs without significant financial strain. For context, the Fair Market Rent (FMR) set by HUD for the area in fiscal year 2026 is $1,190, which is notably higher than the current market rate.
The discrepancy between the median income and the FMR indicates a substantial affordability gap for renters. With only 11.6% of the population being renters and a total population of 1,272, competition among landlords could be fierce, especially when considering the limited pool of potential tenants who can afford the higher FMR rates.
Landlords in ZIP 45321 must weigh the benefits of accepting Section 8 vouchers against the demands of collecting higher rents from cash-paying tenants. While vouchers guarantee timely payments and a stable source of income, they are capped at the FMR of $1,190, which is above the current market rate but still below what some landlords might hope to charge. On the other hand, attracting cash-paying tenants could lead to higher monthly revenues but would require navigating the constraints of the local income levels and affordability concerns.
The takeaway for landlords is clear: understanding the dynamics of both the voucher system and the local rental market is crucial. Accepting vouchers ensures a steady stream of income and access to a segment of the market that may otherwise struggle to find suitable housing. However, landlords should also consider the possibility of raising rents to match the FMR, potentially attracting a different demographic of renters willing to pay closer to the $1,190 threshold. Balancing these strategies will be key to maximizing profitability while maintaining occupancy rates in ZIP 45321.
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.