Location: Dayton-Kettering-Beavercreek, OH | Metro: Dayton-Kettering-Beavercreek, OH MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The analysis of ZIP 45403, located in Dayton, OH, within the Dayton-Kettering-Beavercreek, OH MSA, reveals several key points for landlords and small-portfolio investors. First, the rent math does not work in favor of Section 8 housing. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $880, which is significantly below the market rent indicated by the Zillow Observed Rent Index (ZORI) at $1,041. This discrepancy means that landlords would receive less than market value for their properties if they participate in the Section 8 program.
Second, the acquisition cost of homes in this area is relatively affordable. With a median home value of $102,698, potential investors can acquire properties at a lower price point compared to many other areas. However, the lack of data on days on market (DOM) and the fact that only 0.2% of listings have been price-cut suggests that the market might be stable but also indicates a lack of recent activity or changes in pricing trends, which could affect liquidity.
Third, there is a strong tenant demand in ZIP 45403. The area has a population of 13,608, with 60.0% of residents being renters. This high percentage of renters provides a robust pool of potential tenants for rental properties.
In conclusion, while the tenant demand in ZIP 45403 is strong, the rent math does not favor Section 8 participation due to the significant gap between the FMR and market rent. Additionally, the acquisition costs are affordable, making it a viable option for investors looking to enter the market at a lower price point. However, the limited data on market dynamics should be considered when evaluating the overall investment strategy in this area.
Data Sources: FMR data from HUD (2027). 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.