Section 8 Fair Market Rent (FMR) for ZIP 41016 - 2027

Location: Cincinnati, OH | Metro: Cincinnati, OH-KY-IN HUD Metro FMR Area

Investment Score for ZIP 41016

D
Monthly Rent (2BR)
$1,300
Median Price (2BR)
$201,049
1% Rule
0.65%
Annual Yield
7.76%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$950
1 Bedroom$1,020
2 Bedrooms$1,300
3 Bedrooms$1,710
4 Bedrooms$1,930
5 Bedrooms$2,239
6 Bedrooms$2,508
7 Bedrooms$2,709
8 Bedrooms$2,844

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,020 $132,911 0.77% D
2BR $1,300 $201,049 0.65% D
3BR $1,710 $208,706 0.82% C
4BR $1,930 $234,295 0.82% C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
5,795
Median Household Income
$71,172
Housing Units
2,844
Renter Percentage
28.4%
Occupancy Rate
87.3%
Renter Occupied
705

The potential pitfalls for a Section 8 landlord in ZIP code 41016, Ludlow, KY, begin with tenant turnover. The Fair Market Rent (FMR) for FY 2024 is set at $1,030, which is significantly lower than the market rent of $1,999. This discrepancy can lead to higher turnover rates as tenants might seek more affordable housing options outside the Section 8 program.

Vacancy exposure is another concern. While the days on market (DOM) data is not available, it's crucial to understand that vacancies can be costly. In ZIP 41016, landlords must be prepared for periods when their properties are unoccupied, especially considering the lower FMR compared to market rents.

Deferred maintenance is a significant risk factor, particularly given the typical home value of $202,686 and the median income of $71,172. These figures suggest that landlords may need to invest more into property upkeep without a corresponding increase in rental income, leading to financial strain.

However, these risks are somewhat mitigated by the high renter share in Ludlow, which stands at 28.4%. A large percentage of renters typically translates to higher demand for Section 8 vouchers, making it easier to find qualified tenants who can consistently pay rent through the voucher program.

In conclusion, the risks associated with becoming a first-time Section 8 landlord in ZIP 41016, Ludlow, KY, are moderate. The combination of tenant turnover, vacancy exposure, and deferred maintenance costs needs to be carefully managed, but the high renter density provides a stable foundation for finding reliable tenants.

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.