Section 8 Fair Market Rent (FMR) for ZIP 43204 - 2027

Investment Score for ZIP 43204

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	$1,160
1 Bedroom	$1,240
2 Bedrooms	$1,480
3 Bedrooms	$1,760
4 Bedrooms	$2,010
5 Bedrooms	$2,332
6 Bedrooms	$2,612
7 Bedrooms	$2,821
8 Bedrooms	$2,962

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
1BR	$1,240	$178,112	0.7%	D
2BR	$1,480	$162,795	0.91%	C
3BR	$1,760	$210,988	0.83%	C
4BR	$2,010	$248,580	0.81%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 43204 (Columbus, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 43204 in Columbus, OH, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1300. This amount represents 26.3% of the median household income of $59,266, indicating that it is a significant portion of what residents can afford. However, the actual rental market in 43204 is considerably higher. The Zillow median price for a two-bedroom home is $161,228, which translates to a monthly rent of approximately $1343 based on typical mortgage payments and property management costs. The price-to-FMR ratio of 10.3x suggests that the actual market rents are much higher than the FMR, making it challenging for Section 8 voucher holders to find affordable housing. The constraint for voucher holders is that landlords must agree to accept the FMR, which is significantly lower than market rates, potentially limiting their options. #### Affordability & Renter Profile ZIP code 43204 has a high percentage of renters at 50.5%, indicating a robust demand for rental properties. With a median household income of $59,266, many residents rely on affordable housing solutions such as Section 8 vouchers. Given that the FMR for a two-bedroom unit is only 26.3% of the median income, it is clear that the market is tight, and there is a significant affordability gap. The occupancy rate of 90.7% further supports the idea that the market is relatively tight, with most units occupied, leaving fewer options for new tenants. #### Investor Angle From an investor perspective, the ZIP code 43204 offers a mixed outlook. While the occupancy rate is high, suggesting strong demand, the FMR is significantly below market rents. For example, a two-bedroom unit with a Zillow median price of $161,228 would typically generate a monthly rent of around $1343. However, if an investor wants to attract Section 8 voucher holders, they must accept the FMR of $1300, which is just slightly below the typical market rent. This means that while the market is tight and occupancy rates are high, the potential for cash flow is limited due to the low FMR compared to market rates. The investment grade for this ZIP code is moderate. While the demand for rental properties is strong, the financial returns for investors who exclusively target Section 8 voucher holders will be constrained by the lower FMR. Investors should consider diversifying their portfolio to include a mix of market-rate and Section 8 properties to balance risk and reward. #### Specific Actionable Insights 1. **Target Mixed-Income Properties**: Given the tight market and the significant portion of median income that goes towards FMR, investors should consider acquiring properties that can cater to both market-rate and Section 8 tenants. This approach allows for flexibility in pricing and tenant selection, maximizing potential returns. 2. **Focus on Smaller Units**: The FMR for smaller units (0BR and 1BR) is notably lower, at $1010 and $1090 respectively. These units are more likely to be rented by Section 8 voucher holders, who might find it easier to secure these properties due to the lower rent requirements. Investing in smaller units could provide a more stable cash flow, although the overall revenue per unit will be lower. 3. **Consider Renovation Projects**: Properties that require renovation might be purchased at a discount and then brought up to market standards. This strategy can help investors acquire properties at a lower cost and still command higher rents once renovated, potentially exceeding the FMR but still attracting market-rate tenants. #### Bottom Line For Section 8-focused investors, the ZIP code 43204 presents a challenging environment due to the high market rents and the tight market conditions. The recommendation is to **Skip** this ZIP code for exclusive Section 8 investments. Instead, investors should consider a **Hold** strategy, focusing on mixed-income properties where they can leverage both market-rate and Section 8 tenants to optimize their portfolio performance. This approach balances the need for affordable housing with the realities of the local rental market, providing a more sustainable investment opportunity.

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.