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 | $900 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $202,721 | 0.6% | D |
| 3BR | $1,610 | $300,755 | 0.54% | F |
| 4BR | $1,770 | $412,852 | 0.43% | F |
U.S. Census Bureau data (2024)
In ZIP code 45064, located in Somerville, Ohio, there are several potential issues that could affect a landlord's investment when participating in the Section 8 program. Firstly, tenant turnover is a significant concern due to the difference between the market rent of $867 and the Fair Market Rent (FMR) set at $1010 for FY 2024. This discrepancy suggests that tenants might be attracted by the higher subsidized rent but could also be more likely to leave once their financial situation improves, leading to frequent changes in occupancy.
Vacancy exposure is another critical factor. The Days on Market (DOM) figure is currently unavailable, which indicates a lack of data regarding how quickly rental properties are filled. This uncertainty can lead to prolonged periods without rental income, especially if there are delays in finding eligible Section 8 tenants. Additionally, landlords should consider the deferred-maintenance exposure. With an average home value of $281,701 and a median household income of $102,531, it's possible that tenants might not have the means to cover maintenance costs beyond what is covered by their vouchers, potentially leaving landlords to bear these expenses.
However, these risks must be weighed against the fact that 7.9% of the population are renters. High renter density typically translates into higher demand for housing vouchers, which can stabilize the rental income stream. Despite the challenges posed by turnover and maintenance, the presence of a substantial number of renters can provide a steady pool of potential voucher holders, mitigating some of the financial uncertainties.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.