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 | $1,000 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $177,893 | 0.77% | D |
| 3BR | $1,780 | $301,290 | 0.59% | F |
| 4BR | $1,950 | $384,103 | 0.51% | F |
| 5BR | $2,262 | $551,637 | 0.41% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 45440, located in Kettering, OH, presents a unique opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $1,160. In contrast, the Zillow Observed Rent Index (ZORI), which reflects current market conditions, indicates an average rent of $1,366. This creates a gap of $206, or approximately 17.7%, between the FMR and the market rent.
Given that the FMR is lower than the market rent, landlords who accept housing vouchers must be prepared to absorb the difference between the voucher amount and the actual market rate. This discrepancy means that landlords will receive less rent per unit compared to what they could charge open-market tenants. For example, a landlord renting out a property at the ZORI price would need to accept $1,160 from the government, leaving them to cover the remaining $206 from other sources, such as additional units or subsidies.
In Kettering, OH, where 37.6% of residents are renters and the median home value stands at $315,775, the decision to participate in the Section 8 program should be carefully considered. The median income of $82,383 suggests that many residents rely on affordable housing options, making the demand for Section 8 properties potentially high. However, landlords must weigh this against the financial implications of renting below market rates.
While accepting Section 8 tenants can ensure a steady stream of income and reduce vacancy rates, it also comes with the challenge of managing properties under government oversight. Landlords must adhere to specific maintenance standards and undergo regular inspections, which can increase operational costs. Additionally, the administrative burden of dealing with housing authorities and tenant assistance programs must be factored into the investment strategy.
To summarize, the gap between the FMR and ZORI in ZIP 45440 highlights the potential financial impact of accepting housing vouchers. While the program can provide a reliable source of income, landlords must be aware of the costs associated with renting below market rates and the additional responsibilities that come with participating in the Section 8 program.
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.