Section 8 Fair Market Rent (FMR) for ZIP 45475 - 2027
Location: Dayton-Kettering-Beavercreek, OH | Metro: Dayton-Kettering-Beavercreek, OH MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $900 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
To determine if you should buy in ZIP code 45475 (Unknown, OH) for Section 8 properties, follow these steps:
Step 1: Debt Service Coverage Ratio (DSCR)
- If the Fair Market Rent (FMR) of $1010 for fiscal year 2024 can cover the debt service on a property, proceed to Step 2.
- If the FMR cannot cover the debt service, the answer is No. Do not invest in this area as the rental income will not be sufficient to meet financial obligations.
Step 2: Market Rent Comparison
- If the market rent is above $1010, it suggests that there is potential for higher returns beyond just Section 8 tenants. However, this does not directly affect the viability of a Section 8 investment.
- If the market rent is exactly $1010, then the property is perfectly aligned with the FMR, making it suitable for Section 8 tenants without any additional risk.
- If the market rent is below $1010, the answer is No. The lower market rent indicates that even non-Section 8 tenants would struggle to pay the FMR, which could lead to vacancy issues.
Step 3: Demand Analysis
- If the percentage of renters and the days on market (DOM) indicate strong demand, such as a high percentage of renters and low DOM, then the answer is Yes. There is sufficient demand to ensure occupancy.
- If the percentage of renters and DOM suggest moderate demand, the answer is It Depends. Consider other factors such as property management costs, maintenance expenses, and local competition before making a decision.
- If the percentage of renters is low and DOM is high, the answer is No. This indicates weak demand and difficulty in finding tenants, whether they are Section 8 participants or not.
Note: Due to the lack of specific data on market rent, percentage of renters, and days on market for ZIP 45475, the above analysis is based on hypothetical scenarios. For an accurate assessment, gather detailed local market data and apply the same decision tree approach.
Data Sources: FMR data from HUD (2027).
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.