Section 8 Fair Market Rent (FMR) for ZIP 43065 - 2027

Investment Score for ZIP 43065

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	$1,710
1 Bedroom	$1,830
2 Bedrooms	$2,180
3 Bedrooms	$2,600
4 Bedrooms	$2,960
5 Bedrooms	$3,434
6 Bedrooms	$3,846
7 Bedrooms	$4,154
8 Bedrooms	$4,362

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
2BR	$2,180	$337,279	0.65%	D
3BR	$2,600	$459,640	0.57%	F
4BR	$2,960	$622,159	0.48%	F
5BR	$3,434	$900,048	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 43065 (Powell, OH) #### Section 8 Voucher Dynamics In ZIP code 43065, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1830 per month. This figure represents 14.2% of the median household income of $154,481, indicating that it is well within the affordability range for most residents. However, the actual rental market is significantly higher, with the Zillow median price for a two-bedroom home being $341,074, which translates to a monthly rent of approximately $1421 if rented out at a typical 1% rate. This suggests that the actual rental rates are much lower than the median home value, but still far above the FMR. The Price-to-FMR ratio for a two-bedroom unit is 15.5x, meaning that the median home value is about 15.5 times the FMR. This high ratio indicates that the rental market is substantially below the home value market, but it also implies that landlords who participate in the Section 8 program may face challenges in covering their costs due to the significant gap between FMR and actual market rents. #### Affordability & Renter Profile With a population of 46,679, Powell, OH has a relatively low renter percentage of 13.7%, suggesting that the majority of residents are homeowners. The occupancy rate stands at 94.6%, indicating a robust demand for housing. Given the high median household income of $154,481, the renters in this area are likely to be individuals or families with above-average incomes, possibly including young professionals, retirees, or those seeking to downsize while maintaining a comfortable lifestyle. Despite the high median income, the relatively low renter percentage suggests that the rental market is tight, with limited supply compared to demand. This tightness could make it challenging for Section 8 voucher holders to find suitable housing within the FMR limits. The high median income also means that many residents can afford to pay more than the FMR, further squeezing the availability of affordable rentals. #### Investor Angle From an investor perspective, the ZIP code 43065 presents a mixed picture. The FMR for a two-bedroom unit is $1830, which is a reasonable starting point for evaluating potential returns. However, the actual median rental price for a two-bedroom unit is estimated to be around $1421 based on the Zillow median home value. This implies that landlords participating in the Section 8 program would need to ensure that their costs, including mortgage payments, property taxes, insurance, maintenance, and other expenses, do not exceed the FMR. Given the high median income and tight rental market, there is a strong likelihood that investors could achieve positive cash flow by renting units at or slightly above the FMR. However, the competition for tenants might be fierce, and investors should consider the possibility of needing to offer additional amenities or services to attract and retain Section 8 voucher holders. The investment grade for this ZIP code would be considered moderate to high, given the strong economic indicators and the potential for steady rental income. However, the challenge lies in finding properties that can be rented profitably at the FMR without incurring significant losses. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Given the high FMR for two-bedroom units ($1830), investors should prioritize acquiring or developing two-bedroom properties. This size is most likely to align with the needs of Section 8 voucher holders and offers a balance between affordability and market demand. 2. **Consider Cost Management**: To ensure profitability, investors must carefully manage costs. This includes negotiating favorable terms on mortgages, minimizing property taxes through strategic planning, and keeping maintenance and operational expenses low. Additionally, investors should explore opportunities to increase the value of their properties through upgrades or renovations that do not significantly raise the rent beyond the FMR. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the number of available vouchers and the preferences of voucher holders. This can help investors tailor their offerings to meet the specific needs of this demographic, potentially increasing the chances of securing long-term tenants. #### Bottom Line For Section 8-focused investors, ZIP code 43065 presents a challenging yet potentially rewarding opportunity. The high median income and tight rental market suggest strong demand, but the significant gap between FMR and actual home values poses a risk of negative cash flow. Therefore, the recommendation is to **Hold** until more detailed cost analyses and local market dynamics are understood. Investors should focus on acquiring two-bedroom units and managing costs effectively to ensure profitability. Engaging with local housing authorities will also be crucial for success in this niche market.

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.