Location: Paulding County, OH | Metro: Defiance 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 | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $209,639 | 0.62% | D |
U.S. Census Bureau data (2024)
A skeptical investor analyzing ZIP code 45821 might raise several concerns regarding the feasibility of investing in rental properties under the Section 8 program. These objections can be directly addressed using the available data.
The first objection is whether the Fair Market Rent (FMR) of $970 for the metro area in fiscal year 2026 will sufficiently cover the mortgage on a home valued at $187,295. To evaluate this, one must consider the mortgage payment based on typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly principal and interest payment on a $187,295 home would be approximately $925. This means that the FMR of $970 does indeed cover the mortgage payment, leaving a small buffer for maintenance and other expenses. However, it's important to note that property taxes and insurance costs are not included in this calculation and should be factored into the overall expense budget.
The second concern revolves around the level of renter demand in the area, which stands at 7.3%. This percentage indicates the share of the population that is renting, but it doesn't provide a complete picture of the competition or vacancy rates. A higher percentage of renters suggests a larger pool of potential tenants, but the actual demand can be influenced by factors such as job availability and local economic conditions. The data does not offer insights into these specifics, so further investigation into the local rental market dynamics would be necessary to fully assess the demand.
The final objection pertains to whether voucher payments will keep pace with the market rents, which currently stand at $754. Voucher amounts are adjusted annually based on changes in the FMR, which has historically increased but at varying rates. If the FMR continues to rise, it's likely that voucher payments will also increase, helping to offset any inflationary pressures on market rents. However, the data does not provide the exact amount of annual increases in voucher payments, making it difficult to predict how closely they will align with market rent trends in the future.
In summary, while the FMR of $970 covers the mortgage on a $187,295 home, the 7.3% renter demand figure alone is insufficient to gauge the true competitiveness of the rental market. Similarly, although voucher payments are adjusted annually, the precise alignment with market rents over time remains uncertain without additional data on historical adjustments and projected changes.
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.