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 | $900 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $157,347 | 0.91% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 45820 operate under specific financial guidelines that impact both tenants and landlords. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $860. This figure is unique to this ZIP code, meaning it is adjusted based on the local rental market conditions.
In comparison, the local market rent for a similar two-bedroom unit averages at $1,023 according to the latest Census ACS data. This discrepancy highlights the difference between the government-set rates and the actual rents charged by landlords in the area.
A Section 8 voucher is designed to cover the difference between what a tenant can afford and the rent of a suitable home. Typically, the tenant is expected to pay approximately 30% of their monthly adjusted income towards rent. In ZIP 45820, if we assume an average adjusted income for a household, the tenant's contribution would be calculated based on this percentage. However, the exact amount depends on the individual household's income.
The voucher also includes utility allowances, which vary but are generally set to cover a reasonable amount of energy costs. These allowances are added to the SAFMR to determine the total reimbursement to the landlord. For instance, if the utility allowance is around $100, the total reimbursement could be up to $960 per month for a two-bedroom apartment.
This means that landlords in ZIP 45820 who participate in the Section 8 program will receive a payment closer to the SAFMR plus utility allowances rather than the market rent. Given the market rent is $1,023 and the maximum voucher payment is estimated at $960, there is a reimbursement gap of $63 per month.
To summarize, landlords in ZIP 45820 must understand that the SAFMR of $860 sets the baseline for voucher payments, which can increase slightly with utility allowances. Despite this, the gap between the local market rent and the voucher reimbursement remains, resulting in a landlord receiving less than the full market value for a two-bedroom unit. This economic reality underscores the importance of considering the overall financial implications when deciding to participate in the Section 8 program.
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.