Location: Lima, OH | Metro: Lima, 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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $99,868 | 1.15% | B |
| 3BR | $1,380 | $153,930 | 0.9% | C |
| 4BR | $1,530 | $189,180 | 0.81% | C |
| 5BR | $1,775 | $237,200 | 0.75% | D |
U.S. Census Bureau data (2024)
910 is the Fair Market Rent (FMR) for ZIP 45801 in Lima, OH, for fiscal year 2024, indicating the maximum rental amount allowed under the Section 8 program. 1,145 is the Zillow Observed Rent Index (ZORI), reflecting the average market rent for the area, which is significantly higher than the FMR. This suggests that landlords participating in Section 8 may face a challenge in covering costs compared to those renting at market rates. 139,019 is the median home value in the ZIP code, a figure that provides context for the overall housing market's strength. 45.7% is the share of renters in the area, highlighting a substantial portion of the population dependent on rental housing, including subsidized options. 51,731 is the median income for residents in ZIP 45801, a statistic that underscores the financial situation of potential tenants and their ability to contribute to the rent beyond the Section 8 subsidy. 17 days is the typical Days on Market (DOM) for rental properties, suggesting a relatively quick turnover and indicating demand for rental units. 0.3% is the price-cut share, a low figure that implies landlords rarely need to reduce rents to attract tenants, further supporting the idea of a robust rental market.
Given these numbers, it becomes evident that while the rental market in ZIP 45801 is strong, with high demand and limited need for price reductions, the gap between market rents and the Section 8 FMR could be a point of concern for landlords. The disparity between the median home value and median income also points to the affordability challenges faced by many residents, making subsidized housing programs like Section 8 crucial. However, the lower FMR compared to the ZORI means that landlords might have to carefully manage expenses to ensure profitability when accepting Section 8 tenants. Despite these considerations, the high tenant demand and quick market turnover suggest that landlords who can effectively navigate the Section 8 requirements will find a stable and potentially lucrative investment opportunity. For small-portfolio investors looking to enter the Lima, OH, rental market, participation in Section 8 can offer a reliable stream of income, though they must be prepared for the regulatory oversight and possibly lower rent ceilings.
Verdict: Section 8 remains a viable option for landlords in ZIP 45801, despite the lower rent ceilings compared to market rates.
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.