Location: Mercer County, OH | Metro: Mercer 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 | $800 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $230,363 | 0.43% | F |
| 3BR | $1,250 | $300,051 | 0.42% | F |
| 4BR | $1,390 | $328,828 | 0.42% | F |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 45828 (Coldwater, OH) for Section 8 properties, follow this decision tree based on the given data.
1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property priced at $282,356?
Yes: The FMR of $970 is sufficient to clear the debt service on a $282,356 property. This means that the rental income from a Section 8 tenant will be enough to cover the mortgage payments and other costs associated with owning the property.
No: The FMR of $970 does not cover the debt service on a $282,356 property. Landlords should consider properties with lower purchase prices to ensure that the FMR can cover their debt service.
2) How does the market rent of $846 compare to the FMR?
Above FMR: The market rent is higher than the FMR, which means that landlords could potentially earn more by renting to non-Section 8 tenants. However, if they still wish to cater to Section 8 tenants, they should proceed with caution as the subsidy might not fully cover the market rent.
At FMR: The market rent equals the FMR, making it an ideal scenario for landlords interested in Section 8 properties. They can expect the rental income to match the subsidy amount.
Below FMR: The market rent is lower than the FMR, which is beneficial for landlords who want to maximize their income from Section 8 subsidies. However, they must also assess the demand for Section 8 housing in the area.
3) Is there enough demand for Section 8 properties given the 27.6% of residents are renters and the unknown days on market (DOM)?
It depends: With 27.6% of residents being renters, there is some demand for rental properties. However, the lack of data regarding days on market makes it difficult to determine how quickly Section 8 properties can be rented out. Landlords should investigate further into the local rental market trends and the availability of Section 8 vouchers to make a more informed decision.
In summary, ZIP 45828 presents a mixed picture for Section 8 investment. While the FMR can support the debt service on a property priced at $282,356, landlords need to carefully evaluate the market rent and demand factors before making a final decision. A thorough understanding of the local rental market and the supply of Section 8 vouchers is essential for success in this area.
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.