Section 8 Fair Market Rent (FMR) for ZIP 45490 - 2027

FY 2027 Fair Market Rent Rates

The analysis for ZIP code 45490 in Ohio focuses on the potential returns for landlords and small-portfolio investors through the lens of Section 8 housing. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2024 is set at $1010 per month. To annualize this figure, we multiply by 12, arriving at an annual rental income of $12,120 for a two-bedroom unit under the Section 8 program.

The median home value in ZIP 45490 is currently not available, which makes it challenging to calculate a precise gross yield. However, we can still derive some insights based on the available data. If we assume that the median home value is representative of the property values in the area, the lack of specific figures suggests that the market conditions are either volatile or insufficiently reported to provide a clear picture. This absence of information complicates the estimation of gross yields for both market rents and Section 8 rents.

Given the data constraints, let's consider the implications of the FMR figure alone. With an annual rental income of $12,120 from a Section 8 tenant, the gross yield would be calculated as the annual rental income divided by the property value. Without a specific median home value, we cannot provide a concrete gross yield percentage. However, if we hypothetically assume a median home value, the gross yield would likely be lower compared to typical market yields due to the fixed nature of Section 8 rental rates.

The renter density and days on market (DOM) for ZIP 45490 are also not specified, which further complicates the assessment of which scenario—market rent or Section 8—is more realistic. Typically, higher renter density and shorter DOM indicate a robust rental market, potentially making market rents more attractive. Conversely, a stable or declining rental market might favor the security of Section 8 tenancy despite lower yields.

In conclusion, while the exact gross yield cannot be stated without a median home value, the annualized Section 8 FMR provides a baseline for expected rental income. Investors should consider the stability of Section 8 tenancy versus the potential variability of market rents when deciding on investment strategies in ZIP 45490. The lack of detailed market data suggests caution in relying solely on market rent assumptions until more information becomes available.

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.