Location: Champaign County, OH | Metro: Springfield, 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 | $890 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $207,340 | 0.62% | D |
| 3BR | $1,580 | $309,979 | 0.51% | F |
| 4BR | $1,810 | $382,902 | 0.47% | F |
| 5BR | $2,100 | $437,507 | 0.48% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 45502 (Springfield, OH) for Section 8 investments must evaluate several factors to make an informed decision.
1. Does the Fair Market Rent (FMR) of $1070 cover the debt service on a $307,968 property?
If the annual debt service is less than $12,840 ($1070 x 12 months), then the answer is Yes. The FMR provides sufficient income to meet the debt obligations.
If the annual debt service exceeds $12,840, then the answer is No. The FMR does not cover the cost of debt service, making it unprofitable without additional subsidies or lower mortgage rates.
2. How does the market rent of $886 compare to the FMR?
If the market rent is consistently below $1070, then the answer is It Depends. Landlords would need to ensure that they can attract Section 8 tenants despite the lower market rents. This scenario requires careful tenant screening and possibly adjusting the property's amenities to remain competitive.
If the market rent is equal to or above $1070, then the answer is Yes. The market conditions support the FMR, ensuring that landlords can charge the full subsidy amount without losing potential tenants to non-subsidized properties.
3. Is there enough demand with 13.9% of residents being renters and the unknown number of days on the market (DOM)?
If the Days on Market (DOM) is low (typically under 30 days), indicating quick rental turnover, then the answer is Yes. Despite only 13.9% of residents being renters, the fast turnover suggests strong demand for rental properties in Springfield, OH.
If the DOM is high (over 30 days), then the answer is No. High DOM indicates weak demand, even if 13.9% of residents are renters. Landlords may struggle to find tenants quickly, leading to potential vacancy periods and reduced cash flow.
If the DOM is moderate (between 15 and 30 days), then the answer is It Depends. The demand is present but not guaranteed. Landlords should consider other factors such as the local unemployment rate, job growth, and the availability of Section 8 vouchers to determine if the investment is viable.
The key to success in ZIP 45502 lies in understanding the interplay between these factors. A property with a manageable debt service, supported by the FMR, and situated in an area with strong rental demand will likely perform well under Section 8. Conversely, a property with high debt service, unsupported by market rents, or in an area with weak demand will struggle.
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.