Location: Springfield, 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 | $880 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $278,092 | 0.39% | F |
| 3BR | $1,420 | $368,103 | 0.39% | F |
| 4BR | $1,550 | $479,509 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 45387, centered around Yellow Springs, OH, highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1020, while the Census ACS reports an average market rent of $886. This discrepancy amounts to a $134 difference, representing approximately a 15.1% gap between the two figures.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to achieve higher yields. The government pays up to $1020 per month for rental units in this area, which is above the typical market rate. Therefore, properties rented to voucher tenants will generate more income than those rented at the prevailing market rates. This makes it a compelling strategy for maximizing returns on investment in Yellow Springs.
The higher government payment also mitigates the risk associated with tenant turnover and delinquency, since payments are guaranteed through the voucher program. In a town where only 27.4% of residents are renters, and the median home value stands at $370,190, the opportunity to tap into a more stable income source becomes particularly attractive. Moreover, with a median household income of $96,042, many local residents might find it challenging to afford the median home value, making rental properties, especially those eligible for Section 8 vouchers, increasingly important.
In summary, the $134 or 15.1% gap between the FMR and the market rent in ZIP 45387 presents a clear opportunity for landlords and investors to increase their rental income by participating in the Section 8 program. This is especially true in a context where the majority of residents own homes, and there is a need for affordable housing options. Voucher tenants provide a reliable income stream that can outperform the local rental market, thus enhancing the overall yield of your real estate investments in Yellow Springs, OH.
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.