Section 8 Fair Market Rent (FMR) for ZIP 45040 - 2027

Investment Score for ZIP 45040

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	$1,580
1 Bedroom	$1,690
2 Bedrooms	$2,160
3 Bedrooms	$2,840
4 Bedrooms	$3,210
5 Bedrooms	$3,724
6 Bedrooms	$4,171
7 Bedrooms	$4,505
8 Bedrooms	$4,730

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	$2,160	$281,904	0.77%	D
3BR	$2,840	$366,109	0.78%	D
4BR	$3,210	$626,823	0.51%	F
5BR	$3,724	$885,865	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 45040 (Mason, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 45040 in Mason, Ohio, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2,030. This figure represents 18.3% of the median household income in the area, which is $133,240. However, the actual rental market in Mason is significantly higher. The Zillow median price for a two-bedroom home is $281,144, which translates to a monthly rent of approximately $1,171 based on typical mortgage payments. This means that the actual rental rates are about 11.5 times the FMR for a two-bedroom unit. Given this high price-to-FMR ratio, it is clear that the actual rental market is far above the FMR levels. As a result, Section 8 voucher holders face significant constraints when trying to find affordable housing. They must locate units that are willing to accept vouchers and are priced below the FMR, which is challenging given the local rental market dynamics. #### Affordability & Renter Profile The population of Mason, OH, is 59,518, with 22.3% of residents being renters. The occupancy rate stands at 96.8%, indicating a tight rental market. Given the median household income of $133,240, the majority of residents can afford the high rental costs. However, the relatively low percentage of renters suggests that the area is primarily composed of homeowners, who likely benefit from the strong economy and high incomes. Despite the high median income, the affordability gap for renters is substantial. The FMR for a three-bedroom unit is $2,680, while the Zillow median price for a similar unit would be even higher. This makes it difficult for lower-income families to find suitable housing, especially those relying on Section 8 vouchers. The tight market and high rents indicate that there is limited supply of affordable units, making it a challenging environment for voucher holders. #### Investor Angle From an investor perspective, the ZIP code 45040 presents a mixed picture. While the rental market is robust, the actual rents are much higher than the FMRs. An investor looking to focus on Section 8 tenants would need to ensure that their properties are priced below the FMR to attract these voucher holders. For a two-bedroom unit, this means pricing the rent at $2,030 or less. However, the cash flow potential for such investments is questionable. If an investor were to purchase a two-bedroom property at the Zillow median price of $281,144, the monthly mortgage payment would be around $1,171, assuming a 4.5% interest rate and a 30-year fixed mortgage. Adding in other expenses like property taxes, insurance, and maintenance, the total cost could easily exceed the FMR. Therefore, the cash flow would likely be negative if the investor strictly adheres to the FMR guidelines. In terms of investment grade, the high price-to-FMR ratio suggests that the market is overpriced relative to the FMR. This indicates a risk for investors who rely solely on Section 8 vouchers, as they might struggle to find enough tenants willing to pay the required rent. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1,580, which is still significantly lower than the actual rental market but might offer better cash flow opportunities. Investors should aim to keep the rent below this threshold to attract Section 8 voucher holders. 2. **Consider Alternative Rental Strategies**: Instead of relying solely on Section 8 vouchers, investors could explore alternative rental strategies. For example, offering units at slightly above the FMR but below the actual market rate could attract a broader range of tenants, including those who do not qualify for Section 8 but still struggle with high rents. This approach could help mitigate the risk of negative cash flow. 3. **Target Underserved Areas**: Within the ZIP code, there might be pockets where rental prices are closer to the FMR. Investors should conduct thorough research to identify these areas and target them for investment. This could involve analyzing neighborhood-specific data or reaching out to local real estate agents for insights. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 45040 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to find properties that can generate positive cash flow while adhering to FMR guidelines. Investors might find better opportunities in areas with a more favorable price-to-FMR ratio and a larger percentage of renters. Alternatively, they could consider diversifying their rental portfolio to include non-Section 8 tenants to improve overall financial performance.

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.