Location: Vinton County, OH | Metro: Hocking County, OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 45654 provides insight into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area, for fiscal year 2024, is set at $1160 per month. This annualizes to $13,920. Given the median home value of $246,716, the implied gross yield based on the FMR would be approximately 5.64%. This calculation assumes that the property is rented out at the FMR rate throughout the year.
However, the market rent for 2-bedroom apartments in ZIP 45654 is currently not available. Without this data, it's challenging to provide an accurate comparison between the FMR-based gross yield and the market rent-based gross yield. Nevertheless, if the market rent were higher than the FMR, the gross yield would also increase, potentially offering better returns for investors.
The renter density in ZIP 45654 stands at 15.1%, indicating a relatively low proportion of renters compared to homeowners. This suggests that there might be less demand for rental properties, including those under the Section 8 program. Additionally, the lack of data on the days-on-market (DOM) for rental units makes it difficult to assess how quickly a property can be leased. If the DOM is long, it could affect the overall profitability of the investment.
In conclusion, while the Section 8 program offers a guaranteed gross yield of around 5.64% for a 2-bedroom apartment in ZIP 45654, the absence of market rent data and the lower renter density imply that relying solely on FMR may not reflect the true potential of the market. Investors should consider these factors when deciding whether to participate in the Section 8 program or seek other rental opportunities.
Data Sources: FMR data from HUD (2027). 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.