Location: Shelby County, OH | Metro: Dayton-Kettering-Beavercreek, OH MSA
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 | $790 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $810 | $98,907 | 0.82% | C |
| 2BR | $1,060 | $159,282 | 0.67% | D |
| 3BR | $1,420 | $230,523 | 0.62% | D |
| 4BR | $1,460 | $292,641 | 0.5% | F |
| 5BR | $1,694 | $325,676 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 45365 (Sidney, OH) reveals some key insights into the potential returns for landlords and small-portfolio investors. To begin with, the Fair Market Rent (FMR) for a 2-bedroom apartment in Sidney, OH, for FY 2024 is set at $980 per month. When annualized, this equates to an annual rental income of $11,760. In contrast, the market rent based on Census ACS data is $915 per month, or $10,980 annually.
To calculate the gross yield, we need to consider the median home value in the area, which stands at $211,308. Using the FMR of $980, the implied gross yield for a property in ZIP 45365 is approximately 5.56%. This is derived from the formula: Gross Yield = (Annual Rental Income / Property Value) * 100. Plugging in the numbers, we get: (11,760 / 211,308) * 100 = 5.56%. On the other hand, using the market rent figure of $915, the implied gross yield drops to about 5.19%. The calculation here is: (10,980 / 211,308) * 100 = 5.19%.
Given the 33.2% renter density in Sidney, OH, and the 24-day Days on Market (DOM), it's clear that the market rent scenario is more realistic. While the FMR provides a benchmark, the actual rental rates reflect the current market conditions more accurately. The lower DOM indicates that properties are being rented out relatively quickly, suggesting a strong demand for rentals in the area. However, the renter density is moderate, which means that while there is demand, it's not overwhelming, and landlords should expect some competition.
In summary, landlords and investors can expect a gross yield of around 5.56% if they rely on the FMR, but a more accurate expectation would be closer to 5.19%, based on the current market rent. The latter figure should be considered when making investment decisions, as it reflects the true rental market dynamics in ZIP 45365.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.