Section 8 Fair Market Rent (FMR) for ZIP 41042 - 2027

Investment Score for ZIP 41042

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	$1,260
1 Bedroom	$1,350
2 Bedrooms	$1,730
3 Bedrooms	$2,280
4 Bedrooms	$2,570
5 Bedrooms	$2,981
6 Bedrooms	$3,339
7 Bedrooms	$3,606
8 Bedrooms	$3,786

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,730	$202,611	0.85%	C
3BR	$2,280	$279,192	0.82%	C
4BR	$2,570	$379,980	0.68%	D
5BR	$2,981	$461,779	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 41042 (Florence, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 41042, as determined by HUD for 2026, is set at $1560 for a two-bedroom unit. This figure represents 23.5% of the median household income in Florence, OH, which stands at $79,712. However, the actual rental market in Florence is significantly higher than the FMR. According to Zillow, the median price for a two-bedroom home is $196,897, translating to a monthly rent of approximately $1641 based on a typical mortgage payment (assuming a 4.5% interest rate and a 30-year term). The price-to-FMR ratio of 10.5x indicates that the actual rental prices are much higher than the FMR, making it challenging for Section 8 voucher holders to find affordable housing. The voucher amount of $1560 may not cover the full cost of renting a two-bedroom unit, leading to significant out-of-pocket expenses for tenants. #### Affordability & Renter Profile The renter population in Florence, OH, constitutes 33.2% of the total population, indicating a moderate level of renters in the area. With a high occupancy rate of 96.1%, the rental market appears to be quite tight, suggesting limited availability and potentially higher competition among renters. Given the median household income of $79,712, many renters may struggle to afford the actual rental prices, especially when they exceed the FMR. The 23.5% of median income allocated to the FMR for a two-bedroom unit implies that renters would need to spend a substantial portion of their income on housing, leaving less for other necessities. This tight market dynamic could make it difficult for lower-income individuals to secure housing without significant financial strain. #### Investor Angle From an investor perspective, the ZIP code 41042 presents a mixed scenario. While the actual rental prices are higher than the FMR, the tight market conditions suggest strong demand for rental properties. However, the challenge lies in attracting and retaining Section 8 voucher holders due to the disparity between the FMR and actual rental costs. To determine if this ZIP code is cash-flow positive at FMR, we must consider the actual rental prices and the potential for subsidies. If an investor can secure a property at or below the FMR, the cash flow could be positive, but this would require finding units priced at or below $1560 for a two-bedroom. Given the current market dynamics, this may be difficult. The investment grade for this ZIP code can be considered moderate to low for Section 8-focused investors. The high price-to-FMR ratio suggests that the actual rental prices are not aligned with the FMR, which could limit the pool of eligible tenants. Additionally, the tight market conditions imply that there might be fewer opportunities to acquire properties at favorable prices. For investors looking to leverage Section 8 vouchers, the mismatch between FMR and actual rental prices poses a significant constraint. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced close to or below the FMR. For instance, targeting a two-bedroom unit priced at around $1560 or less would ensure that the property is within reach for Section 8 voucher holders. This strategy would help in securing tenants and maintaining steady cash flows. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units such as one-bedroom apartments may be more attractive to Section 8 voucher holders. The FMR for a one-bedroom unit is $1210, which is closer to the actual rental prices compared to larger units. Investing in smaller units could provide better alignment with the voucher program and reduce the risk of vacancy. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide valuable insights into the demand for Section 8 vouchers and the likelihood of finding eligible tenants. This engagement can also help in understanding any local policies or incentives that may support Section 8-focused investments. #### Bottom Line For Section 8-focused investors, the ZIP code 41042 presents a challenging environment due to the high actual rental prices compared to the FMR. The tight market conditions and the significant gap between the FMR and actual rental prices make it difficult to attract and retain eligible tenants. Therefore, the recommendation for this ZIP code is to **Skip** unless investors can find properties priced at or below the FMR. The high price-to-FMR ratio and the limited number of units available at these prices suggest that the returns may not justify the investment for those solely focused on Section 8 vouchers.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.