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 | $1,040 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $194,522 | 0.74% | D |
| 3BR | $1,880 | $225,565 | 0.83% | C |
| 4BR | $2,120 | $321,015 | 0.66% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 41074 in Dayton, KY, are significant. First, consider the disparity between the market rent and the Fair Market Rent (FMR) for FY 2024. At a market rent of $1,661, landlords might experience higher tenant turnover when compared to the FMR of $1,130. This turnover can lead to increased costs associated with finding new tenants and maintaining rental properties.
Vacancy exposure is another critical issue. With an average number of days on the market (DOM) being unavailable, it's challenging to predict how long a property might remain vacant. Vacancies can significantly impact cash flow, especially if the landlord is relying on consistent rental income.
Deferred maintenance is also a concern. The typical home value in ZIP 41074 is $198,782, while the median household income is $66,087. This suggests that many residents may struggle to afford necessary repairs and maintenance, leading to potential issues with property upkeep. Landlords must be prepared to invest in regular maintenance to keep their properties in good condition and meet Section 8 requirements.
Despite these challenges, there are factors that mitigate some of the risks. The renter share in the area is 42.8%, indicating a high concentration of renters. A large number of renters typically translates into higher demand for housing vouchers, which can provide a steady stream of tenants. This demand helps ensure that landlords can fill vacancies more quickly and maintain occupancy levels.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.