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 | $870 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $193,727 | 0.62% | D |
| 3BR | $1,560 | $267,951 | 0.58% | F |
| 4BR | $1,710 | $465,423 | 0.37% | F |
| 5BR | $1,984 | $755,054 | 0.26% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 45419, located in Oakwood, OH, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $950, while the market rent, measured by the Zillow Rent Index (ZORI), is $1,340. This results in a gap of $390 per month, or approximately 41% below the market rate.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the potential costs associated with housing voucher tenants. The discrepancy means that landlords will need to absorb the difference between what the voucher covers ($950) and the actual market rent ($1,340). This can impact cash flow and overall profitability, especially considering that Oakwood has a median home value of $277,078 and a median income of $92,264, indicating a higher-end residential area where rental prices tend to reflect property values.
In Oakwood, where 32.7% of residents are renters, the decision to accept Section 8 vouchers should be carefully weighed against the financial realities. While the program ensures timely payments and stable tenancy, the reduced rental income can be a deterrent. Investors must consider whether the benefits of consistent income and low vacancy rates outweigh the lower yields compared to market rents.
To illustrate, if an investor owns a property valued at the median home value of $277,078 and aims for a typical rental yield, accepting a Section 8 tenant at $950 would significantly reduce the expected return. However, the stability and government-backed payment structure can provide a reliable stream of income, which might be preferable in a competitive rental market.
In summary, the gap between FMR and market rent in ZIP 45419 presents a challenge for landlords and investors, who must decide whether to accept lower yields or seek alternative strategies to mitigate the financial impact of housing voucher tenants.
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.