Investor · NY · Member since 2019 · 88 posts · 59 votes
Hi everyone, I’m looking for some feedback from local Ohio investors on the current Barberton market.
I have a 5-bedroom, 2-bath turnkey rental that I’ve listed. It’s currently generating $1,693/mo with a guaranteed AMHA (Section 8) voucher. Based on my numbers, it’s hitting a 9.3% Cap Rate at the current $149,900 price point.
I’ve handled the major 2026 plumbing/subfloor updates and the 2025 water line, so the 'heavy lifting' is done.
Does this yield seem in line with what you're seeing for Barberton lately? I'm curious if out-of-state investors are still targeting this pocket for cash flow.
Following to see what others say on this. I'm investing in Toledo and I'm getting a little better cap rate but at a lower price point. Seems like you have capex concerns under control. I'd be checking the income against market and looking at the durability of the income stream beyond the existing voucher. Basically, I'd want to be sure the current rent is sustainable. As I mentioned, I'm not familiar with Barberton, so perhaps someone else will chime in here. Do you have more than one property in the area?
Investor · Pleasanton, CA · Member since 2026 · 119 posts · 52 votes
5mo
@Cheza M. the 9.3% cap rate is the headline but the number worth stress testing is what happens to that cap rate when the AMHA voucher expires or the tenant turns over.
Section 8 guaranteed rent is real income but it is attached to the tenant, not the property. When the voucher holder moves out you are back to market rent until a new voucher tenant is placed. In a 5-bed in a secondary Ohio market the DOM for a replacement Section 8 tenant can run 60-90 days. That vacancy period alone drops your effective annual yield meaningfully on a $149900 asset.
The question worth answering before buying is what the property cash flows at market rent without the voucher premium, and what your break-even occupancy looks like at that lower rent figure. If the deal still works without the Section 8 income you have a genuine margin of safety. If it only works with the voucher you are underwriting to a single tenant dependency.