Location: Shelby County, OH | Metro: Auglaize 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 | $1,380 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $227,432 | 0.44% | F |
| 3BR | $1,380 | $283,539 | 0.49% | F |
| 4BR | $1,540 | $329,966 | 0.47% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 45871, New Knoxville, OH, reveals an interesting scenario when comparing Federal Market Rent (FMR) to market rent. Using the annualized 2BR FMR of $990, the implied gross yield for a property valued at $259,283 would be approximately 3.8%. This calculation is derived from the formula: Gross Yield = (Annual Rent / Property Value) * 100. In contrast, using the market rent figure of $815, the gross yield drops to about 3.1%.
To determine which scenario is more realistic, consider the local rental market conditions. The renter density in New Knoxville is 23.5%, indicating that a significant portion of the population owns homes rather than renting. This low renter density suggests that demand for rental properties might be limited, making the lower market rent figure of $815 more likely to reflect actual rental income. Additionally, the N/A-day DOM (Days on Market) implies that rental listings are either quickly filled or not tracked accurately, further supporting the idea that market rents are more indicative of what can be achieved in this area.
Conclusion: Given the data, the gross yield based on market rent ($815) is more realistic at 3.1%. While the FMR-based gross yield of 3.8% is higher, it does not take into account the local rental market dynamics, including the relatively low renter density. Therefore, investors should expect a gross yield closer to 3.1% when considering Section 8 participation in New Knoxville.
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.