Section 8 Fair Market Rent (FMR) for ZIP 43235 - 2027

Investment Score for ZIP 43235

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	$1,490
1 Bedroom	$1,600
2 Bedrooms	$1,900
3 Bedrooms	$2,260
4 Bedrooms	$2,580
5 Bedrooms	$2,993
6 Bedrooms	$3,352
7 Bedrooms	$3,620
8 Bedrooms	$3,801

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,900	$219,556	0.87%	C
3BR	$2,260	$393,378	0.57%	F
4BR	$2,580	$525,417	0.49%	F
5BR	$2,993	$680,348	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 43235 (Columbus, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 43235 is set by HUD for 2026, with specific rates for different bedroom sizes. For a two-bedroom unit, the FMR is $1690 per month. However, the actual median rent for a two-bedroom unit in this area is significantly higher, at approximately $219,070 according to Zillow. This translates to a price-to-FMR ratio of 10.8x, indicating that the actual market rents are far above the FMR levels. This discrepancy creates significant constraints for voucher holders. They can only afford units priced at or below the FMR, which means they would struggle to find suitable housing in the local market without substantial concessions from landlords. The gap between the FMR and actual market rents suggests that landlords may be hesitant to accept Section 8 vouchers due to the lower rental income compared to market rates. #### Affordability & Renter Profile ZIP code 43235 has a population of 44,589, with nearly half (49.6%) of residents being renters. The occupancy rate is high at 96.1%, suggesting that the housing stock is largely occupied and there is little vacancy. Given the median household income of $86,666, the affordability of housing becomes a critical issue. A two-bedroom unit priced at $1690 per month represents 23.4% of the median income, which is a reasonable percentage for housing costs. However, the actual market price of $219,070 is much higher, putting significant pressure on renters' budgets. The tight market conditions indicate that there is a strong demand for rental properties, but the supply is limited, especially for those priced at or near the FMR. This makes it challenging for low-income households to find affordable housing options, particularly if they rely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 43235 presents a mixed picture when considering cash flow and investment grade. The FMR for a two-bedroom unit is $1690, which is substantially lower than the actual median rent of $219,070. This implies that properties rented at FMR levels will likely generate less cash flow than those rented at market rates. However, the high occupancy rate and strong rental demand suggest that there is still a market for these units, albeit a smaller one. To determine the investment grade, we need to consider the potential for long-term stability and returns. While the immediate cash flow might be lower, the steady demand for rental properties and the relatively high median income could provide some assurance against default. Additionally, the high occupancy rate indicates that there is a consistent need for housing, which could support long-term investment viability. However, the challenge lies in finding a balance between attracting voucher holders and maintaining competitive cash flow. Investors who are willing to accept Section 8 vouchers must be prepared to operate at lower rent levels, which could affect their profitability. On the other hand, those who focus on market-rate rentals will benefit from higher rents but may face increased competition and difficulty in securing tenants. #### Specific Actionable Insights 1. **Targeted Marketing**: Investors should consider targeted marketing strategies to attract voucher holders. This includes clearly advertising that the property accepts Section 8 vouchers and possibly offering incentives such as reduced application fees or first-month rent discounts. By doing so, they can tap into a segment of the market that is underserved and potentially more stable. 2. **Property Upgrades**: To justify higher rents and remain competitive in the market, investors might want to consider upgrading properties to meet the expectations of market-rate tenants. This could include improvements such as modern appliances, updated finishes, and enhanced amenities. These upgrades can help command higher rents while still appealing to voucher holders who prioritize quality living conditions. 3. **Rent Control Strategies**: Given the high price-to-FMR ratio, investors might explore rent control strategies to make their properties more attractive to voucher holders. This could involve setting rents slightly below the market rate but above the FMR to ensure a balance between affordability and profitability. For example, a two-bedroom unit could be priced at $1800, which is above the FMR but still below the market rate. #### Bottom Line For Section 8-focused investors, ZIP code 43235 presents a challenging environment due to the significant gap between FMR and actual market rents. The high occupancy rate and strong rental demand suggest that there is a market for affordable housing, but the limited number of units priced at FMR levels makes it difficult to achieve positive cash flow. Given these factors, the recommendation for investors is to **Hold**. While there is potential to attract voucher holders, the overall market dynamics suggest that the majority of properties will be rented at market rates. Therefore, investors should carefully evaluate their risk tolerance and financial goals before entering this market. If they decide to invest, focusing on property upgrades and targeted marketing strategies can help maximize returns and appeal to both voucher holders and market-rate tenants.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.