Section 8 Fair Market Rent (FMR) for ZIP 45601 - 2027

Investment Score for ZIP 45601

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	$900
1 Bedroom	$950
2 Bedrooms	$1,130
3 Bedrooms	$1,450
4 Bedrooms	$1,490
5 Bedrooms	$1,728
6 Bedrooms	$1,935
7 Bedrooms	$2,090
8 Bedrooms	$2,195

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$950	$136,806	0.69%	D
2BR	$1,130	$182,448	0.62%	D
3BR	$1,450	$250,894	0.58%	F
4BR	$1,490	$329,111	0.45%	F
5BR	$1,728	$399,752	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 45601 (Chillicothe, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 45601 indicate that a two-bedroom unit is priced at $1080 per month, which represents 21.7% of the median household income of $59,748. This suggests that the FMR is relatively affordable for the average resident. However, the actual rent prices can vary significantly from these estimates. For instance, the Zillow median price for a two-bedroom home is $173,389, which translates to a monthly rental cost of approximately $1445 based on a typical mortgage payment (assuming a 4.5% interest rate and a 30-year term). This means that the actual rent prices are higher than the FMR, with a price-to-FMR ratio of 13.4x for a two-bedroom unit. This disparity creates significant constraints for voucher holders. The $1080 FMR for a two-bedroom unit is far below the actual market rent of $1445, meaning that many landlords may be unwilling to accept vouchers due to the lower reimbursement rates. Additionally, the higher actual rent prices could limit the number of units available to voucher holders, as they might struggle to find properties where the landlord accepts the voucher amount. #### Affordability & Renter Profile In Chillicothe, OH, 32.2% of the population are renters, indicating a moderate demand for rental housing. With a population of 55,836, this translates to roughly 18,000 renters. The occupancy rate of 93.5% suggests that the rental market is fairly tight, with most available units being occupied. Given the median household income of $59,748, the $1080 FMR for a two-bedroom unit is indeed affordable for the average resident, representing just over 21% of their annual income. However, the actual rent prices being much higher ($1445) make it challenging for lower-income individuals to afford housing without assistance. The tight market conditions mean that there is likely little excess supply, and competition among renters is high. This can drive up rent prices further, making it even more difficult for low-income households to secure affordable housing. The high occupancy rate also indicates that there is a strong need for rental units, but the limited availability of units at or near the FMR could create a barrier for voucher holders seeking housing. #### Investor Angle From an investor’s perspective, the ZIP code 45601 presents a mixed picture. The FMR for a two-bedroom unit is $1080, but the actual market rent is closer to $1445. This means that if an investor were to purchase a property and rent it out at the market rate, they would likely see a positive cash flow. However, if they intend to participate in the Section 8 program, they must consider renting at the FMR rate, which is significantly lower. Given the high price-to-FMR ratio of 13.4x, the investment grade for properties in this ZIP code would be considered low for Section 8-focused investors. The high market rent prices suggest that there is a strong demand for rental housing, but the reimbursement rates under the Section 8 program are not sufficient to cover the true market value of the properties. Therefore, investors who are looking to maximize returns through market-rate rentals will find this ZIP code more attractive, while those strictly focused on Section 8 may face challenges. #### Specific Actionable Insights 1. **Focus on Market-Rate Rentals**: Given the high price-to-FMR ratio, investors should focus on renting out properties at market rates rather than participating in the Section 8 program. A two-bedroom unit rented at $1445 per month would generate a significantly higher income compared to the $1080 FMR rate. 2. **Consider Mixed-Income Developments**: Investors could explore developing mixed-income housing projects where some units are reserved for market-rate tenants and others for voucher holders. This approach could help balance the financial impact of lower reimbursement rates with the benefits of higher market rents. 3. **Engage with Local Housing Authorities**: To better understand the local dynamics and potential opportunities, investors should engage with the local housing authorities. They can provide insights into the number of available vouchers, the preferences of voucher holders, and any incentives or subsidies that might be offered to landlords who accept vouchers. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 45601 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it less favorable for investors who rely solely on Section 8 vouchers. Instead, investors should consider other ZIP codes with more favorable ratios or explore alternative investment strategies such as market-rate rentals or mixed-income developments. However, for investors willing to diversify their rental portfolio and take advantage of both market-rate and Section 8 opportunities, ZIP 45601 could still present viable options. But given the specific requirements of this analysis, the bottom line remains clear: the ZIP code is not ideal for a pure Section 8 investment strategy.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.