Section 8 Fair Market Rent (FMR) for ZIP 43232 - 2027

Investment Score for ZIP 43232

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	$1,120
1 Bedroom	$1,190
2 Bedrooms	$1,420
3 Bedrooms	$1,690
4 Bedrooms	$1,930
5 Bedrooms	$2,239
6 Bedrooms	$2,508
7 Bedrooms	$2,709
8 Bedrooms	$2,844

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	$1,190	$108,990	1.09%	B
2BR	$1,420	$153,730	0.92%	C
3BR	$1,690	$217,553	0.78%	D
4BR	$1,930	$258,885	0.75%	D
5BR	$2,239	$264,766	0.85%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 43232 (Columbus, OH) The ZIP code 43232 is located in Columbus, OH, within Franklin County. With a population of 47,364, it has a significant renter base, with 60.6% of residents being renters. The occupancy rate stands at 91.5%, indicating a relatively high demand for housing units in the area. The median household income is $51,417, which provides context for the affordability of housing in this region. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for 2026 in ZIP 43232 is as follows: - 0BR: $970 - 1BR: $1040 - 2BR: $1250 (which is 29.2% of the median income) - 3BR: $1500 - 4BR: $1680 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent based on the number of bedrooms required. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR property is $152,597, which translates into a monthly rental cost of approximately $1,272 when considering a typical 1.2% cap rate (a common metric used to estimate rental yields). This means that the actual rental costs are already above the FMR for 2BR units by about $22 per month. Voucher holders face constraints due to the limited availability of properties that accept Section 8 vouchers and the high disparity between FMR and actual rents. In ZIP 43232, the price-to-FMR ratio for a 2BR unit is 10.2x, which indicates that the market rents are substantially higher than the FMR. This makes it challenging for voucher holders to find affordable housing options within their budget. ### Affordability & Renter Profile Given that 60.6% of the population are renters, there is a substantial demand for rental properties. The median household income of $51,417 suggests that many residents have low to moderate incomes, making them potentially eligible for Section 8 assistance. However, the high price-to-FMR ratio of 10.2x indicates that the market is tight and likely oversupplied with expensive properties relative to what most residents can afford. The 2BR FMR of $1250 represents only 29.2% of the median income, which means that even if a household receives a voucher, they would still need to contribute a significant portion of their income towards rent. This could be a financial strain for many residents, especially those who are already struggling to make ends meet. ### Investor Angle From an investor perspective, the ZIP code 43232 presents both opportunities and challenges. While the occupancy rate is high at 91.5%, indicating strong demand, the actual rents are much higher than the FMR. This means that landlords who rely solely on Section 8 vouchers will struggle to achieve positive cash flow unless they can secure additional subsidies or have lower-than-average operating costs. To illustrate, let's consider a 2BR unit. At the FMR of $1250, the investor would need to ensure that the total expenses (including mortgage payments, property taxes, insurance, maintenance, and other costs) do not exceed this amount. Given the median home price of $152,597, a typical mortgage payment might be around $763 per month (assuming a 30-year fixed-rate mortgage at 5%). Adding in property taxes (approximately $1,000 annually), insurance ($1,200 annually), and maintenance costs, the total monthly expenses could easily surpass the FMR, leading to negative cash flow. The investment grade for this ZIP code is moderate to low, primarily due to the high disparity between FMR and actual market rents. Investors should carefully evaluate their ability to manage properties at these lower rent levels before committing to purchases in this area. ### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on acquiring smaller units such as 0BR or 1BR properties. These units have lower FMRs ($970 and $1040 respectively) and may be more manageable in terms of achieving positive cash flow. Additionally, there may be more demand for smaller units among low-income households. 2. **Seek Additional Subsidies**: To improve the financial viability of Section 8 properties, investors should look for additional subsidies or programs that can help bridge the gap between FMR and actual market rents. For example, some local governments offer additional rental assistance programs that can complement Section 8 vouchers. 3. **Consider Location-Specific Strategies**: Since the market is tight, investors should consider location-specific strategies to attract tenants. This could include offering amenities that are not typically covered by Section 8 vouchers, such as laundry facilities, parking, or modern appliances. These added features could make the property more attractive to voucher holders and potentially increase the likelihood of tenancy. ### Bottom Line For Section 8-focused investors, the ZIP code 43232 presents a challenging environment due to the high disparity between FMR and actual market rents. The recommendation is to **Skip** this ZIP code unless you can secure additional subsidies or have a strategy to manage properties at lower-than-market rents. If you decide to invest, focus on smaller units and consider adding value through amenities to improve tenant attraction and retention. This analysis is based strictly on the provided data and does not account for potential changes in the market or policy adjustments that could affect future conditions.

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.