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 | $860 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $171,883 | 0.69% | D |
| 3BR | $1,550 | $221,293 | 0.7% | D |
| 4BR | $1,750 | $255,087 | 0.69% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 41040, Falmouth, KY, reveals interesting insights into the potential returns for landlords and small-portfolio investors. Using the Fair Market Rent (FMR) for a 2-bedroom apartment at $1040 per month (annualized to $12,480), and the median home value at $209,728, the implied gross yield can be calculated. This calculation shows a gross yield of approximately 6%.
In contrast, using the market rent figure of $878 per month (annualized to $10,536), the gross yield drops to around 5%. These two scenarios provide a range for potential gross yields based on whether properties are rented under Section 8 or at market rates.
Given the 29.2% renter density in Falmouth, it's important to consider the likelihood of finding tenants willing to pay market rates versus those seeking Section 8 assistance. The N/A-day Days on Market (DOM) indicates that there isn't enough recent data to determine how quickly properties are typically leased, which could affect vacancy rates and thus net operating income (NOI).
However, focusing solely on gross yield, the Section 8 scenario with a gross yield of 6% is more attractive compared to the 5% yield at market rates. This higher yield is due to the guaranteed rental income through the Section 8 program, which covers a portion of the tenant's rent. Landlords should weigh this higher gross yield against the administrative burden and other factors associated with participating in the Section 8 program.
Investors must also consider the local housing market dynamics and the stability of the rental income stream. While the gross yield comparison leans towards the Section 8 option, the decision should be made after a thorough analysis of all relevant factors including property management costs and the overall demand for affordable housing in Falmouth.
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.