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 | $790 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $191,255 | 0.56% | F |
| 3BR | $1,400 | $230,275 | 0.61% | D |
| 4BR | $1,540 | $342,191 | 0.45% | F |
| 5BR | $1,786 | $446,403 | 0.4% | F |
U.S. Census Bureau data (2024)
Skeptical investors looking into ZIP 45377, Vandalia, OH, often raise several key concerns regarding the feasibility of investing in rental properties. Let's address these objections directly using the available data.
Objection 1: Will FMR $880 (zip FY 2024) cover the mortgage on a $245,092 home?
The Fair Market Rent (FMR) for ZIP 45377 is set at $880 for FY 2024. To determine if this amount will cover the mortgage, we must consider the typical interest rates and loan terms. Assuming a fixed-rate mortgage at a 4.5% interest rate over 30 years, the monthly payment on a $245,092 home would be approximately $1,210. This means that the FMR of $880 would not fully cover the mortgage payment. However, it is important to note that the FMR is designed to reflect market conditions and ensure affordability for low-income families, rather than covering all costs for landlords. Additional income from other sources or strategic financing options can help bridge this gap.
Objection 2: Is there enough renter demand at 33.1%?
The rental demand in ZIP 45377 is represented by the percentage of households renting, which stands at 33.1%. While this figure might seem modest, it indicates a significant portion of the population relies on rental housing. The demand for rental properties in this area is likely to remain steady, especially given the economic conditions and the need for affordable housing. Landlords should focus on offering well-maintained, competitively priced units to attract tenants. Additionally, the rental vacancy rate and average length of time properties remain on the market can provide further insight into the actual demand.
Objection 3: Will vouchers keep pace with $984 market rents?
The market rent in ZIP 45377 is currently around $984, while the voucher amount is set at $880. This discrepancy suggests that vouchers may not fully cover the market rent, leaving landlords to absorb the difference. However, the voucher program is designed to assist low-income families and can still provide a stable source of income. Landlords should also consider the administrative ease and reliability of voucher payments compared to traditional rent collections. Moreover, the FMR is periodically adjusted to reflect changes in the market, so future increases could help align voucher amounts with market rents.
In conclusion, while the data raises valid points about the challenges of investing in ZIP 45377, it also highlights opportunities for landlords who are willing to manage their properties effectively and adapt to local market conditions. The current FMR and voucher amounts do not fully cover the mortgage on a $245,092 home or match the market rent of $984, but these figures can still support a viable investment strategy when combined with proper financial planning and management practices.
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.