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 | $1,150 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $240,419 | 0.66% | D |
| 3BR | $2,080 | $331,795 | 0.63% | D |
| 4BR | $2,350 | $415,514 | 0.57% | F |
| 5BR | $2,726 | $493,026 | 0.55% | F |
U.S. Census Bureau data (2024)
ZIP 41094, located in Walton, KY, within the Cincinnati, OH-KY-IN HUD Metro FMR Area, serves as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the alignment of the Fair Market Rent (FMR) for the area with the market rents and median home values.
The HUD FMR for ZIP 41094 in fiscal year 2024 is set at $1330. This figure closely matches the market rent of $1,351, indicating that properties in this ZIP code can be effectively rented out under the Section 8 program without significant concessions. The median home value in the area is $346,139, which further supports the notion that this ZIP code offers stable rental income. Landlords and small-portfolio investors can rely on consistent cash flow from tenants participating in the Section 8 program, as the rent subsidies will cover a substantial portion of the market rate.
A cash-flow anchor is critical for maintaining financial stability in a portfolio, especially when dealing with the uncertainties of property management. With a mere $21 spread between the HUD FMR and the market rent, the risk of vacancy is minimized, and the likelihood of attracting and retaining tenants who qualify for the Section 8 program is maximized. This ZIP code provides a reliable source of income, which can help balance out other investments that might have higher volatility or require more active management.
While the ZIP code also has characteristics that could make it an appreciation play or a diversifier, such as a 0.3% price-cut share and a median income of $96,515, the primary focus should remain on its role as a cash-flow anchor. The low price-cut share suggests minimal competition among landlords, while the median income indicates that the local economy can support steady demand for housing. However, these factors are secondary to the immediate cash flow benefits that align closely with the Section 8 program's rent guidelines.
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.