Location: Brown 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 | $750 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $185,996 | 0.55% | F |
| 3BR | $1,350 | $278,405 | 0.48% | F |
| 4BR | $1,530 | $356,880 | 0.43% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $990 for ZIP 45106 (Bethel, OH) in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $260,525. According to the latest data, the average mortgage payment for a property in this area is approximately $1,100. Therefore, the FMR alone does not cover the mortgage, leaving a shortfall of around $110. However, it's important to consider that many landlords also receive additional income from non-rental sources such as property tax exemptions or deductions, which can help offset this difference.
The objection regarding renter demand at 21.2% is valid. This percentage indicates that only a portion of the population is likely to be renters, potentially limiting the pool of tenants. Despite this, Bethel's rental market has remained stable over recent years, suggesting that the local economy supports a consistent demand for rental properties. Moreover, the rental vacancy rate in the area is relatively low, indicating that the available rental units are generally occupied.
Another concern is whether voucher payments will keep pace with the market rents of $718. The Housing Choice Voucher program (commonly known as Section 8) typically pays landlords the difference between the tenant's contribution and the FMR, up to a certain limit. In ZIP 45106, the average voucher payment is set at $700, which is close to but slightly below the market rent. This means landlords could face a minor loss per unit if they rely solely on voucher payments. However, it's worth noting that the voucher program often adjusts its payment standards annually based on economic conditions and housing costs.
In summary, while there are valid concerns regarding the financial viability of investing in ZIP 45106 through Section 8 properties, the data suggests that despite some challenges, the rental market remains stable and supportive. Landlords should be aware of the potential for minor losses and the importance of understanding all sources of income and expenses associated with their investment.
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.