Location: Cincinnati, OH | Metro: Cincinnati, OH-KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,040 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 45033 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 45033 in fiscal year 2024 is set at $1130, while the Census ACS reports the average market rent at $815. This results in a difference of $315 per month, or approximately 38%, where the FMR exceeds the market rent.
This gap makes ZIP 45033 a prime location for a yield play through Section 8 tenants. Landlords can expect to receive a guaranteed payment from the government that is higher than what they would typically collect from open-market tenants. Given that only 28.6% of residents are renters, there is a relatively low supply of rental units compared to demand, which further supports the attractiveness of Section 8 as a steady source of income.
The median income in the area is $42,500, indicating a lower economic bracket where many residents rely on assistance programs such as Section 8. With no median home value reported, it suggests that homeownership is less prevalent, making rentals an essential component of the local housing market.
By accepting Section 8 tenants, landlords are essentially converting their properties into a government-backed rental income stream. This not only provides financial stability but also allows them to charge rents above the typical market rate without increasing the risk of vacancy. In ZIP 45033, the government's willingness to pay $1130 ensures a higher return on investment than what the open market would offer, thus making it a lucrative strategy for both landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). 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.