Regional Housing Study

In 2021, the Fair Market Rental rates increased by an average of 8.6% in the Firelands Region (rentdata.org, 2021). In addition, only 38.7% of Emergency Housing Vouchers have been utilized in Ohio (Development, U.D., 2022). This low utilization rate is almost entirely caused by a lack of inventory. This means that the 8.6% increase in rental rates is being passed on to the consumer for 61.3% of the eligible population for HUD Vouchers (our communities’ lowest wage earners). In addition, because rental rates are increasing faster than wages, individuals who do utilize subsidies find it harder to overcome the need to rely on these benefits and become subsidy independent. This effects the labor force in several ways. There is a substantial benefits cliff in relation to housing subsidies. This means that a better paying job could result in a substantial net loss of income. Unfortunately, Ohio does not have a step-down system for most subsidies, meaning an individual could go from paying a $100 monthly rent copay to paying $1,000 per month if they earn as low as a $1.00 an hour raise. In most instances, Ohioans must earn less than 50% of the regional median income in order to qualify for subsidized housing. In the Firelands Region, this equates to $15,645 per earner or $29,204 per household (Economic Modeling Software International, 2022).  Availability in housing across markets is also a factor in talent attraction, a critical component to growing our labor force.