Location: Ross County, OH | Metro: Pike 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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $162,420 | 0.71% | D |
| 3BR | $1,400 | $201,346 | 0.7% | D |
| 4BR | $1,510 | $267,363 | 0.56% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to invest in ZIP 45690 (Waverly, OH) for Section 8 properties begins with three key questions. Here’s how to proceed:
1) Does the Fair Market Rent (FMR) of $1,060 cover the debt service on a property priced at $170,193?
Yes: The FMR of $1,060 is sufficient if it can meet the monthly mortgage payments and other expenses. To determine this, calculate the total monthly debt service, including principal, interest, taxes, insurance, and maintenance costs. If the total debt service is less than $1,060, then the answer is yes.
No: If the total monthly debt service exceeds $1,060, investing in Waverly, OH, for Section 8 purposes would not be financially viable based on the FMR alone.
It Depends: This scenario arises when the total monthly debt service is close to but slightly above $1,060. In such cases, consider potential subsidies or additional income sources that could bridge the gap.
2) How does the market rent of $963 compare to the FMR?
Above FMR: If the market rent were above the FMR, it would suggest strong demand and potentially higher returns for non-Section 8 tenants. However, since the market rent is below the FMR at $963, this indicates that Section 8 rents are higher than what the market naturally commands.
At FMR: Not applicable in this case.
Below FMR: With the market rent below the FMR, Section 8 properties offer a financial advantage over market-rate rentals. This makes them attractive for investors looking to stabilize their cash flow.
3) Is there enough demand given that 31.9% of residents are renters and the days on market (DOM) is not available?
Yes: A rental rate of 31.9% indicates a significant portion of the population relies on renting, which is a positive sign for demand. Without specific DOM data, assume a reasonable turnover rate and evaluate if the number of renters justifies the investment.
No: If the rental demand is weak despite the high percentage of renters, due to factors such as high unemployment or low job growth, then the answer is no. However, the lack of DOM data prevents a definitive conclusion on this point.
It Depends: The absence of DOM data means you must rely on other indicators of housing demand. Consider local economic trends, job availability, and school quality to gauge if the demand will support your investment. Additionally, check the vacancy rates and any plans for new construction that might affect future demand.
In summary, the decision to invest in ZIP 45690 for Section 8 properties hinges on the ability of the FMR to cover debt service, the favorable comparison of Section 8 rents to market rates, and an assessment of overall demand based on available data points. Proceed with caution, especially regarding the unknown DOM metric.
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.