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 | $850 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $83,832 | 1.38% | A |
| 3BR | $1,510 | $121,809 | 1.24% | A |
| 4BR | $1,650 | $154,506 | 1.07% | B |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $950 for ZIP 45404 (Dayton, OH) in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $102,452. The FMR is indeed lower than the typical mortgage payment on a home of that value, which can range widely depending on interest rates and down payments. However, it's important to note that FMR is a benchmark used by HUD to determine the maximum allowable rent for subsidized housing units, not an average rent across all homes. In practice, landlords often set rents higher than FMR for unsubsidized units.
The concern over renter demand being sufficient at 55.9% is valid. This percentage indicates the proportion of households renting rather than owning their homes. While 55.9% suggests a moderate rental market, it does not provide a complete picture of the demand. To fully assess demand, we'd need additional data such as vacancy rates and the number of available rental properties. However, a significant portion of households renting implies a substantial market presence, which could be attractive for landlords looking to diversify their portfolio.
Another objection is whether voucher holders will keep pace with market rents of $1,137. Voucher programs are designed to help low-income families afford housing, but they typically cover only a portion of the rent based on the area median income (AMI). For ZIP 45404, the voucher amount is likely to be less than $1,137, given the national average cap of 30% of AMI. Landlords should be aware that while vouchers can stabilize occupancy, they might not cover the full market rent. This could mean accepting a lower rent or seeking non-voucher tenants who can pay the full market rate.
In summary, while the FMR of $950 is lower than what might be needed to cover the mortgage on a $102,452 home, it reflects subsidized housing standards rather than the broader rental market. The 55.9% renter demand suggests a viable market, though further investigation into vacancy rates and supply would be prudent. Lastly, voucher amounts are unlikely to match the $1,137 market rent, indicating a potential need for landlords to balance between voucher and non-voucher tenants.
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.