Location: Hardin County, 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 | $880 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,340 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $171,913 | 0.59% | F |
| 3BR | $1,340 | $238,713 | 0.56% | F |
| 4BR | $1,530 | $283,712 | 0.54% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 45810 (Ada, OH) provides insight into potential investment returns for landlords and small-portfolio investors. To begin, let's annualize the Fair Market Rent (FMR) for a 2-bedroom unit, which stands at $930 per month according to FY 2024 data, against the median home value of $222,717.
First, consider the FMR scenario. At $930 per month, the annualized rent would be $11,160. This translates to a gross yield of approximately 5%. The calculation is straightforward: divide the annual rent by the median home value. In this case, $11,160 / $222,717 = 0.0501, or roughly 5%.
Next, we'll look at the market rent scenario, where the average rent for a 2-bedroom unit is $867 per month, based on Census ACS data. The annualized market rent would be $10,404, leading to a gross yield of about 4.7%. The calculation is similar: $10,404 / $222,717 = 0.0467, or approximately 4.7%.
The gross yields calculated above represent the potential income returns if the property were rented out at either the FMR or the market rate. However, the actual return on investment (ROI) will depend on other factors such as operating expenses, maintenance costs, and vacancy rates.
Given the 39.9% renter density in Ada, OH, it's important to note that while this is a significant portion of the population, it suggests that a majority of residents still own their homes. This could imply a smaller pool of potential tenants compared to areas with higher renter densities. Additionally, the N/A-day DOM (days on market) indicates that there is insufficient data to determine how quickly rental units are typically filled in this area, which could affect the speed of securing a tenant and the overall cash flow.
Between the two scenarios, the FMR gross yield of 5% is slightly more optimistic than the market rent gross yield of 4.7%. However, it's crucial to remember that FMR represents a benchmark set by HUD and may not reflect the actual market conditions. Therefore, the market rent gross yield of 4.7% is likely a more realistic figure for landlords and small-portfolio investors to use when evaluating potential investments in Ada, OH.
In conclusion, the cap rate analysis for ZIP 45810 reveals a gross yield range of 4.7% to 5%, with the lower end being more reflective of current market conditions. Investors should take into account the local renter density and the lack of clear DOM data when considering these yields as part of their broader investment strategy.
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.