Location: Van Wert 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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $135,881 | 0.85% | C |
| 3BR | $1,400 | $226,355 | 0.62% | D |
| 4BR | $1,550 | $224,582 | 0.69% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 45887 (Spencerville, OH) provides a clear picture of potential investment returns. The Fair Market Rent (FMR) for a 2-bedroom unit in this area for fiscal year 2024 is $970 per month. To annualize this figure, multiply it by 12, yielding an annual rental income of $11,640. This translates into a gross yield of approximately 5.90% when compared to the median home value of $197,481.
In contrast, the market rent for a 2-bedroom unit in Spencerville, OH, based on Census ACS data, is $1,013 per month. Annualizing this market rent produces an annual rental income of $12,156. This results in a gross yield of roughly 6.16% relative to the median home value.
Evaluating these two scenarios, the market rent scenario offers a slightly higher gross yield than the FMR scenario. However, the decision between these options should also consider the local rental market conditions and tenant preferences. Given that Spencerville has a renter density of 23.6%, the market rent scenario appears more realistic. A lower renter density suggests that there might be fewer tenants willing to pay above the FMR, making the market rent scenario more reflective of actual rental income potential.
The N/A-day DOM (Days on Market) indicates that there is limited recent data on how long properties typically remain on the market. This lack of information can affect the speed at which a property can be rented out, potentially impacting the overall return on investment. Despite this uncertainty, the market rent scenario still provides a better estimate of potential rental income, leading to a gross yield of 6.16% compared to the 5.90% from the FMR scenario.
For landlords and small-portfolio investors, the market rent scenario presents a more optimistic outlook on gross yields, aligning closely with current market conditions in Spencerville, OH. This scenario should be considered when evaluating the potential returns of a Section 8 property in this ZIP code.
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.