Location: Hancock County, OH | Metro: Hancock 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 | $700 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $195,764 | 0.68% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 45890 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,020, while the Census ACS data indicates that the current market rent stands at $738. This represents a gap of $282, or approximately 38.5%, between what landlords can charge under the Section 8 program and what they might typically receive from open-market renters.
In this scenario where the FMR exceeds the market rent, landlords can leverage the Section 8 program to increase their rental yields. By participating in the program, landlords are guaranteed a higher rent payment, closer to the FMR, which is $1,020. This means that even though the market rate is lower at $738, landlords can still achieve a higher income per unit by accepting Section 8 vouchers. This makes the ZIP code an attractive investment opportunity for those looking to maximize their returns on rental properties.
The broader context of ZIP 45890 includes a relatively low percentage of renters at 13.7%. Despite this, the median home value is high at $180,776, indicating a robust local economy. However, the median income of $99,079 suggests that many residents may find it challenging to afford market-rate rents without assistance. Therefore, the Section 8 program serves as a critical bridge, enabling tenants to secure housing at a rate that is both affordable and profitable for landlords.
To summarize, the gap between the FMR and market rent in ZIP 45890 presents a clear yield play for landlords willing to accept Section 8 vouchers. This strategy allows them to capitalize on a higher rental income, aligning with the economic realities of the area where a substantial portion of the population might need financial aid to cover housing costs.
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.