Location: Cincinnati, OH | Metro: Cincinnati, OH-KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 45062 reveals an interesting picture when comparing the Federal Market Rent (FMR) to the market rent. Using the annualized FMR of $1290 for a 2-bedroom apartment, the implied gross yield for a property in this area would be approximately 7.7%. This calculation is derived by dividing the annual rental income ($1290 * 12 = $15,480) by the median home value of $205,994.
On the other hand, using the market rent figure of $788 per month, the implied gross yield drops significantly to about 4.6%. This is calculated by taking the annual market rent ($788 * 12 = $9,456) and dividing it by the median home value of $205,994.
The stark difference between these two yields highlights the potential benefits of participating in the Section 8 program for landlords and small-portfolio investors in ZIP 45062. However, it's important to consider the context of the local real estate market. With a renter density of only 12.0%, competition for tenants willing to pay the FMR rate could be fierce, especially if the majority of residents prefer traditional rental arrangements.
The lack of data on the days on market (DOM) makes it challenging to assess how quickly properties might be rented under either scenario. However, given the lower renter density, it's reasonable to assume that finding a tenant willing to pay the higher FMR rate could take longer compared to securing a market-rate tenant.
In conclusion, while the Section 8 program offers a higher gross yield of 7.7% versus the market rent yield of 4.6%, the actual performance may depend on factors such as the speed at which a property can be leased and the overall demand for subsidized housing in ZIP 45062. Landlords should weigh these considerations carefully before deciding whether to participate in the Section 8 program.
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.