Section 8 Fair Market Rent (FMR) for ZIP 45420 - 2027

Location: Dayton-Kettering-Beavercreek, OH | Metro: Dayton-Kettering-Beavercreek, OH MSA

Investment Score for ZIP 45420

C
Monthly Rent (2BR)
$1,250
Median Price (2BR)
$140,933
1% Rule
0.89%
Annual Yield
10.64%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$910
1 Bedroom$1,010
2 Bedrooms$1,250
3 Bedrooms$1,630
4 Bedrooms$1,780
5 Bedrooms$2,065
6 Bedrooms$2,313
7 Bedrooms$2,498
8 Bedrooms$2,623

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,010 $96,432 1.05% B
2BR $1,250 $140,933 0.89% C
3BR $1,630 $186,155 0.88% C
4BR $1,780 $211,468 0.84% C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
24,411
Median Household Income
$60,588
Housing Units
12,450
Renter Percentage
37.6%
Occupancy Rate
96.3%
Renter Occupied
4,503

The rent math in ZIP 45420 (Kettering, OH, Dayton-Kettering-Beavercreek, OH MSA metro) does not work in favor of Section 8 tenants. The Fair Market Rent (FMR) set at $990 for fiscal year 2024 is significantly lower than the market rent, which stands at $1,205 as indicated by the Zillow Observed Rent Index (ZORI).

Acquisition in this area is affordable for potential investors. With a median home value of $168,580, properties are relatively inexpensive compared to other markets. The average Days on Market (DOM) is 16 days, suggesting that homes are selling quickly once listed. Furthermore, only 0.2% of listings have been found to require a price cut, indicating strong seller's market conditions.

Tenant demand is present but not overwhelming. The total population of 24,411 includes a substantial renter share of 37.6%. This means nearly 9,188 residents are actively seeking rental housing, providing a reasonable pool of potential tenants.

Despite the mismatch between the FMR and market rent, making it unattractive for landlords participating in the Section 8 program, the area remains financially viable for acquisition due to low median home values and quick sales. However, the tenant pool is limited to those who qualify for Section 8, which may not fully meet the needs of all landlords or small-portfolio investors looking to maximize returns. Investors should weigh these factors carefully before entering the Kettering market.

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.