Location: Dayton-Kettering-Beavercreek, 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 | $890 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $202,832 | 0.6% | D |
| 3BR | $1,590 | $414,710 | 0.38% | F |
| 4BR | $1,730 | $684,696 | 0.25% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering real estate investments in ZIP 45370, Xenia, OH, often raise several key concerns. Let's address these points directly using available data.
Objection 1: Will the Fair Market Rent (FMR) of $980 for the zip code in fiscal year 2024 cover the mortgage on a $472,022 home?
The FMR of $980 is a critical benchmark for rental pricing in the area. To determine if it covers the mortgage, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 6%, the monthly payment on a $472,022 home would be approximately $2,850. Clearly, the FMR of $980 is insufficient to cover the mortgage alone. However, this does not account for potential property appreciation, tax benefits, or the ability to increase rent over time. Additionally, the FMR is expected to rise, potentially closing the gap between rent income and mortgage payments.
Objection 2: Is there enough renter demand at 10.1%?
The renter demand in ZIP 45370 is relatively low at 10.1%. This percentage indicates that only a small portion of the population is actively seeking rental properties. Despite this, the low demand can be offset by focusing on affordable housing options, which align well with the FMR. The key here is to target the specific needs of renters in the area, such as offering cost-effective housing solutions that cater to the local job market and demographics. While the demand is not high, there are opportunities to capture a significant share of the market by providing quality, affordable rentals.
Objection 3: Will vouchers keep pace with $1,125 market rents?
Vouchers are a crucial component of the rental market, especially in areas with a significant number of low-income households. In ZIP 45370, the average voucher amount is around $750. Given the market rent of $1,125, vouchers alone do not cover the full rent. However, the Housing Choice Voucher Program is designed to help low-income families afford decent housing, and the program typically adjusts its funding based on need and inflation. Investors should expect some financial gap but also anticipate support from other sources, such as co-payments from tenants, to make up the difference. It's important to note that relying solely on voucher funding can be risky, as changes in government policy or funding levels could impact the stability of rental income.
In summary, while the data presents challenges in covering mortgage costs and attracting sufficient renter demand, there are strategic ways to mitigate these risks. Vouchers provide a steady stream of income but will likely require supplementary measures to meet market rents. Careful planning and understanding of the local market are essential for success in ZIP 45370.
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.