Section 8 Fair Market Rent (FMR) for ZIP 45065 - 2027

Investment Score for ZIP 45065

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 45065 (South Lebanon, OH) for Section 8 investment, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1530 cover the debt service on a property valued at $368,593?

• If yes: The FMR is sufficient to cover your mortgage payments and other financing costs. Proceed to Step 2.
• If no: The FMR is too low to support the debt service on a property of this value. Do not invest in this area for Section 8 purposes.

Step 2: Compare the Zillow Observed Rental Index (ZORI) of $2,032 to the FMR of $1530.

• If ZORI is above FMR: Market rents are higher than the FMR, which means there could be additional opportunities to charge market rates when the unit is not occupied by a Section 8 tenant. This is positive but does not guarantee profitability for Section 8 alone. Proceed to Step 3.
• If ZORI is equal to FMR: Market rents align exactly with the FMR, which means you can expect stable rental income that matches the FMR. However, you will not have the flexibility to charge more when not under Section 8 contract. Proceed to Step 3.
• If ZORI is below FMR: This scenario is unlikely given the provided data, but if it were true, it would suggest that market rents are lower than what the government deems as fair, making it difficult to find tenants willing to pay the FMR. In this case, investment would be risky even if the FMR covers debt service.

Step 3: Evaluate the demand factors: 25.9% of the population are renters, and the days on market (DOM) is listed as N/A, which indicates insufficient data for an accurate assessment.

• If demand is high: With a significant portion of the population renting, there is a reasonable demand for rental properties. However, without a specific DOM figure, it's challenging to gauge how quickly units might rent. Investment is viable but monitor local market conditions closely.
• If demand is moderate: Renters make up a notable part of the population, but the lack of DOM data suggests some uncertainty. You should still consider investing but be prepared for potential fluctuations in occupancy rates.
• If demand is low: The combination of low demand and insufficient DOM data makes this area less attractive for Section 8 investment. Seek areas with clearer indicators of strong rental demand.

The decision ultimately hinges on the alignment between FMR and debt service, the comparison of ZORI to FMR, and the strength of rental demand. For ZIP 45065, the FMR meets the criteria for covering debt service on a $368,593 property, and ZORI is above FMR, indicating potential for market-rate rents. However, the lack of DOM data introduces uncertainty about rental speed, which must be considered alongside other local market factors.

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.