Location: Scioto County, OH | Metro: Scioto County, OH
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 | $700 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $84,423 | 1.18% | B |
| 3BR | $1,350 | $145,529 | 0.93% | C |
| 4BR | $1,500 | $208,920 | 0.72% | D |
U.S. Census Bureau data (2024)
The decision to invest in ZIP code 45663 (West Portsmouth, OH) for Section 8 properties hinges on three key questions.
1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property valued at $105,070?
If the debt service is less than $970 per month, then the answer is Yes. For instance, if the monthly mortgage payment is $600, then the FMR comfortably covers the debt service, making the investment viable.
If the debt service exceeds $970 per month, the answer is No. A higher debt service means that the income from Section 8 would not be sufficient to meet financial obligations.
2) Is the market rent of $721 above, at, or below the FMR?
If the market rent is below the FMR, then the answer is Yes. This indicates that Section 8 tenants can afford market rates, which could make properties in this area attractive to both Section 8 and non-Section 8 tenants.
If the market rent equals the FMR, then the answer is It Depends. The equilibrium suggests that while Section 8 tenants can cover the rent, landlords might miss out on potential higher market rents.
If the market rent is above the FMR, then the answer is No. Landlords would find it difficult to attract non-Section 8 tenants willing to pay the lower FMR rate.
3) Do the 28.9% of renters and the unknown days on market (DOM) indicate sufficient demand?
A 28.9% rental rate is relatively low, suggesting limited demand. However, if the unknown DOM (Days on Market) indicates that units are renting quickly, then the answer is Yes. Rapid leasing times suggest strong tenant interest despite the lower rental rate.
If the DOM is long, then the answer is No. A high rental vacancy rate combined with slow leasing times points to weak demand, making it a less favorable investment.
In cases where DOM is unknown but the rental rate is low, the answer is It Depends. Further investigation into local rental trends and competition would be necessary to determine the viability of the investment.
Given these criteria, a landlord must evaluate their specific financial situation and local market conditions to decide whether investing in ZIP code 45663 aligns with their goals. The analysis reveals that the area's suitability for Section 8 investments is contingent upon the answers to these gating questions.
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.