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 | $970 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $176,349 | 0.75% | D |
| 3BR | $1,730 | $256,716 | 0.67% | D |
| 4BR | $1,890 | $401,200 | 0.47% | F |
| 5BR | $2,192 | $527,964 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 45409, Oakwood, OH, within Montgomery County, revolve around the federal government subsidizing low-income tenants' housing costs. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1240. This figure represents the maximum amount the government will pay for a rental unit under the Section 8 Housing Choice Voucher program. However, the local market rent for a similar unit is higher, at $1,672, according to ZORI (Zillow Observed Rent Index).
A landlord participating in the Section 8 program receives a subsidy that covers the difference between the tenant's portion and the SAFMR. The tenant is generally expected to contribute 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,800 per month, the tenant would pay about $540 towards rent.
In addition to the base rent subsidy, landlords also receive utility allowances. These allowances vary but typically cover electricity, gas, water, and sewer. For ZIP 45409, let's consider an average utility allowance of $300. This means the total monthly payment a landlord can expect from the government and the tenant would be the sum of the tenant's contribution and the utility allowance, plus the base rent subsidy.
Given these numbers, the total reimbursement would be approximately $1,040 ($540 tenant contribution + $300 utility allowance + $1240 base rent subsidy - $1,040 = $540 + $300 + $1,240 - $1,040).
This leaves a reimbursement gap for the landlord, who must charge the tenant the full market rent of $1,672. The shortfall, therefore, is calculated as follows: $1,672 (market rent) minus $1,040 (total reimbursement), resulting in a reimbursement gap of $632 per month. This gap must be covered by the tenant's additional income or other sources, such as subsidies or assistance programs.
In summary, landlords in ZIP 45409 who accept Section 8 vouchers for a two-bedroom apartment will receive a total of $1,040 per month, which is less than the local market rent of $1,672. This results in a reimbursement gap of $632 per month that landlords must address.
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.