Location: Cincinnati, 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 | $1,020 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $234,526 | 0.6% | F |
| 3BR | $1,840 | $312,474 | 0.59% | F |
| 4BR | $2,080 | $415,141 | 0.5% | F |
| 5BR | $2,413 | $489,406 | 0.49% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 45103, which includes Batavia, OH, in Clermont County, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1200. This figure is specific to this ZIP code and reflects the maximum amount that the Housing Choice Voucher program will pay towards rent.
Local market rents, as measured by ZORI (Zillow Observed Rental Index), run higher at $1883 per month. This indicates that landlords in ZIP 45103 who participate in Section 8 might face a significant gap between what they could potentially charge and what the program reimburses.
A voucher payment consists of two parts: the tenant's contribution and the government subsidy. Tenants are required to pay 30% of their adjusted income toward rent. If a tenant's adjusted income is $1,600 per month, their contribution would be $480. The government then covers the remaining portion up to the SAFMR limit. In this case, the total voucher payment would be $1200, with $480 coming from the tenant and $720 from the government subsidy.
In addition to the rent subsidy, the Section 8 program also provides utility allowances. These allowances vary but can add an additional $100-$200 to the monthly reimbursement. However, these amounts do not affect the rent ceiling; they are separate payments intended to cover utilities such as electricity, gas, and water.
To illustrate, if a landlord sets the rent at $1883 for a two-bedroom unit, and the tenant's contribution is $480, the landlord would receive only $1200 from the voucher program, leaving a reimbursement gap of $683. This gap represents the difference between the local market rent and the maximum voucher reimbursement.
On the other hand, if the landlord sets the rent at or below the SAFMR of $1200, the reimbursement gap disappears, and the landlord receives the full amount of the rent plus the utility allowance. In ZIP 45103, landlords must carefully consider whether accepting a lower rent is financially viable compared to the local market rates.
The typical reimbursement gap for a two-bedroom unit in ZIP 45103 is thus $683, assuming the landlord charges the local market rate. This gap can be challenging for landlords who wish to maximize their rental income but still want to participate in the Section 8 program to serve tenants with lower incomes.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.