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 | $1,030 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,100 | $118,755 | 0.93% | C |
| 2BR | $1,410 | $162,901 | 0.87% | C |
| 3BR | $1,860 | $204,016 | 0.91% | C |
| 4BR | $2,090 | $223,045 | 0.94% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 45015, which includes Hamilton, OH, and is part of Butler County, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1280. This figure is specific to this ZIP code and reflects the maximum amount that HUD will pay towards a tenant's rent under the Section 8 program.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is slightly higher at $1,335. This indicates that landlords in ZIP 45015 can charge above the SAFMR but should be aware of the implications on their income.
A landlord participating in Section 8 receives payments from two sources: the tenant and HUD. The tenant portion typically covers 30% of their adjusted income. If the tenant's adjusted monthly income is $1,000, they would contribute $300 towards rent. HUD then pays the difference between the tenant's contribution and the SAFMR, up to the limit of $1280. In this case, HUD would pay $980.
Additionally, landlords receive utility allowances to cover electricity, gas, water, and sewer costs. These allowances vary but are generally around $300-$400 per month. This means that if a landlord sets the total rent at $1280, they will receive the full $980 from HUD plus the utility allowance, ensuring they meet their rental income needs.
If the landlord sets the rent at the local market rate of $1335, they will still only receive a maximum of $1280 from HUD for the rental portion. To make up the difference, they must rely on the utility allowance and any additional contributions from the tenant. However, this setup often leaves a shortfall. In this scenario, the shortfall would be $55 ($1335 - $1280).
To summarize, landlords in ZIP 45015 can expect a typical reimbursement gap when setting rents at the local market rate. By aligning their rental rates closer to the SAFMR, they can minimize this gap and ensure stable income. For a two-bedroom unit, the reimbursement gap, given the local market rent, is $55.
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.