Location: Preble County, 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 | $930 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $153,044 | 0.84% | C |
| 3BR | $1,680 | $262,140 | 0.64% | D |
| 4BR | $1,900 | $348,020 | 0.55% | F |
| 5BR | $2,204 | $425,421 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 45042, located in Middletown, Ohio, presents a unique balance between yield and stability for real estate investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,160, which is slightly below the market rent of $1,199. However, considering the median home value stands at $243,250, the rental yields are relatively attractive.
On the stability axis, the area shows moderate signs of stability. With 27.8% of residents being renters, there is a decent-sized tenant pool. The days on market (DOM) average is 24 days, indicating that properties are typically rented out quickly once they become available. Additionally, the median household income is $69,520, which suggests that tenants have a reasonable ability to pay rent.
When analyzing the yield, it's important to note that the FMR is lower than the market rent, which means that landlords can potentially charge higher rents than the government-subsidized rates. This could be beneficial for those seeking higher returns on their investment. However, the lower FMR also implies that the subsidies for Section 8 participants might be less generous compared to other areas, which could affect the number of qualified applicants.
In terms of stability, the relatively low percentage of renters and the quick DOM suggest that while there is a stable demand for rentals, it might not be as robust as in areas with a higher proportion of renters. The income figure supports the idea that tenants can generally afford the rent, but the overall stability score is somewhat tempered by the smaller rental market share.
Based on these figures, ZIP 45042 leans towards being a steady-cashflow zone. The rental yields are positive, and the quick DOM indicates a reliable demand. However, the relatively low percentage of renters means that the market isn't highly volatile, nor is it an environment where flipping properties would generate significant short-term gains. Investors should focus on long-term rental strategies to maximize returns and maintain a stable cash flow.
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.