Section 8 Fair Market Rent (FMR) for ZIP 45044 - 2027

Investment Score for ZIP 45044

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	$960
1 Bedroom	$1,030
2 Bedrooms	$1,310
3 Bedrooms	$1,720
4 Bedrooms	$1,940
5 Bedrooms	$2,250
6 Bedrooms	$2,520
7 Bedrooms	$2,722
8 Bedrooms	$2,858

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
1BR	$1,030	$96,998	1.06%	B
2BR	$1,310	$132,444	0.99%	C
3BR	$1,720	$240,958	0.71%	D
4BR	$1,940	$476,900	0.41%	F
5BR	$2,250	$618,166	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 45044 (Middletown, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 45044 is set by HUD for the year 2026. For a two-bedroom apartment, the FMR is $1230, which represents 20.0% of the median household income of $73,732. This means that a tenant receiving a Section 8 voucher can afford up to $1230 per month for rent. However, the actual market rent for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $130,315, which translates to a monthly rent of approximately $1086 if we assume a typical mortgage payment based on a 30-year fixed rate loan at 4%. Given the Price-to-FMR ratio of 8.8x, it is clear that the actual market rents far exceed the FMR. As a result, landlords who accept Section 8 vouchers must be willing to rent their properties below market rates, which can be a significant constraint for voucher holders seeking housing. #### Affordability & Renter Profile In ZIP code 45044, 38.1% of the population are renters, indicating a substantial rental market. The occupancy rate of 92.8% suggests that the market is relatively tight, with few vacancies available. Given the high actual market rents compared to the FMR, affordability is a significant concern for many renters, particularly those relying on Section 8 vouchers. The median household income of $73,732 provides some context; however, the FMR for a two-bedroom unit being only $1230 implies that a considerable portion of the population may struggle to find affordable housing options. The tight market conditions make it even more challenging for low-income renters to secure housing. #### Investor Angle From an investor perspective, the ZIP code 45044 presents a mixed picture. While the occupancy rate is high at 92.8%, indicating strong demand, the actual market rents are much higher than the FMR. A landlord accepting a Section 8 voucher for a two-bedroom unit would receive $1230 per month, whereas the market rent is around $1086, assuming a mortgage-based calculation. This discrepancy means that the property would likely be cash-flow negative if rented at the FMR. However, the investment grade can still be positive due to the strong demand and limited supply. Investors should consider the potential for long-term appreciation in property values, as well as the stability provided by government-backed rental assistance programs. The key challenge is balancing the lower rental income from Section 8 vouchers against the higher market rents and the risk of having a property remain vacant. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high Price-to-FMR ratio, investors might consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $960, which is closer to the actual market rent. This could provide better cash flow opportunities while still catering to the needs of low-income renters. 2. **Consider Location-Specific Strategies**: Within Middletown, there may be pockets where the actual rents are closer to the FMR. Investors should conduct detailed neighborhood analyses to identify areas where the gap between FMR and market rent is narrower. This could involve examining areas near public transportation, schools, or other amenities that attract lower-income tenants. 3. **Diversify Rental Portfolio**: To mitigate the risks associated with renting at FMR levels, investors should consider diversifying their rental portfolio. This could mean owning a mix of properties that cater to both Section 8 voucher holders and market-rate tenants. By doing so, they can balance the lower income from Section 8 units with the higher income from market-rate units. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 45044 is to **Skip** this market unless they can find properties in specific neighborhoods where the actual rents are closer to the FMR. The high Price-to-FMR ratio and tight market conditions make it difficult to achieve positive cash flow when renting exclusively to voucher holders. Investors should look for markets where the gap between FMR and market rent is smaller, or consider strategies that allow them to diversify their rental portfolio to include both voucher 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.