Location: Cincinnati, OH | Metro: Cincinnati, OH-KY-IN HUD Metro FMR Area
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 | $1,120 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,200 | $149,477 | 0.8% | C |
| 2BR | $1,530 | $239,008 | 0.64% | D |
| 3BR | $2,010 | $307,117 | 0.65% | D |
| 4BR | $2,270 | $410,978 | 0.55% | F |
| 5BR | $2,633 | $600,996 | 0.44% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1180 for ZIP 41011 (Covington, KY) in fiscal year 2024 will sufficiently cover the mortgage on a $285,320 home. To address this concern, we must consider the typical mortgage payments based on recent home values in the area. Assuming a 6.50% APR, a 20% down payment, and a conventional 30-year fixed-rate mortgage, the monthly mortgage payment would be approximately $1,300. This figure is derived from the median home value in the region. Therefore, the FMR of $1180 does not fully cover the mortgage payment, leaving a shortfall of around $120 per month.
The investor may also doubt if there is sufficient renter demand at 53.9%. According to recent rental listings, there are currently 156 apartments and 30 houses available for rent in ZIP 41011. While the rental demand appears strong, it's important to note that the vacancy rate is slightly higher than the national average. However, this does not necessarily indicate low demand, as the vacancy rate can be influenced by various factors, including seasonal fluctuations and the availability of new properties. Additionally, the rental market shows a slight increase in prices compared to last year, suggesting that demand remains steady.
Another objection could be whether housing vouchers will keep pace with the market rents of $1,537. Unfortunately, the data does not provide specific figures on the number of vouchers used or their average value in ZIP 41011. However, it's worth noting that voucher programs are typically adjusted annually to reflect changes in the cost of living and housing market conditions. Landlords who accept vouchers can often benefit from reduced vacancy periods and guaranteed rent payments, even if the voucher amount does not fully cover the market rent.
In summary, while the FMR of $1180 may not fully cover the mortgage on a $285,320 home, the rental market in ZIP 41011 shows signs of stability. There is enough rental demand to support property investments, though some caution regarding vacancy rates is warranted. Vouchers can provide a reliable source of income, although they may not match the exact market rent. These points should be carefully considered when evaluating investment opportunities in Covington, KY.
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.