Location: Preble County, OH | Metro: Darke 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 | $1,000 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,730 | $206,094 | 0.84% | C |
U.S. Census Bureau data (2024)
Skeptical investors looking into ZIP code 45382 may have several concerns regarding the financial viability of renting properties under the Section 8 program. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,180 (metro FY 2026) cover the mortgage on a $197,871 home?
The FMR of $1,180 is the amount that HUD deems sufficient to cover the average rent and utilities for a modest apartment in the area. However, whether this will cover the mortgage on a home priced at $197,871 depends on several factors, including the interest rate and the loan term. Assuming a typical 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment on a $197,871 home would be approximately $1,075. This means that the FMR does indeed cover the mortgage payment, leaving a buffer for maintenance and other expenses. However, if the interest rate is higher or the home price exceeds the average, the FMR might not fully cover the mortgage.
Objection 2: Is there enough renter demand at 17.2%?
The rental demand percentage of 17.2% suggests that a significant portion of households in ZIP 45382 are renters. While this figure alone does not provide a complete picture of the rental market, it indicates that there is a base level of demand. To determine if this demand is sufficient, one would need to analyze the vacancy rates, the number of units available, and the competition in the rental market. The data provided does not offer these specifics, so we cannot definitively conclude the strength of the rental market solely based on the 17.2% figure.
Objection 3: Will vouchers keep pace with $1,130 market rents?
The voucher amount of $1,180 is designed to match the FMR, which is slightly above the market rent of $1,130. This suggests that vouchers should generally cover the costs associated with renting out a property in ZIP 45382. However, the sustainability of this coverage hinges on future adjustments to the voucher amounts and the potential changes in market rents. Without projections for future years, it's impossible to state with certainty that vouchers will always keep pace with market rents. Investors must monitor both the voucher amounts and market rents over time to ensure continued profitability.
In conclusion, while the data provides some reassurance regarding the ability of FMR to cover mortgage payments and indicates a presence of rental demand, it falls short in offering a comprehensive view of the rental market dynamics and long-term trends in voucher and market rents. Investors should proceed with caution and consider additional research before making decisions.
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.