Location: Highland 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 | $1,110 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $240,034 | 0.57% | F |
| 3BR | $1,890 | $302,158 | 0.63% | D |
| 4BR | $2,270 | $385,956 | 0.59% | F |
U.S. Census Bureau data (2024)
ZIP 45118, located in Fayetteville, OH, within the Highland County, OH metro area, presents a strategic opportunity for inclusion in a Section 8 portfolio. This ZIP code is best categorized as an appreciation play, given its unique characteristics that favor long-term investment growth over immediate cash flow.
The financial metrics paint a compelling picture. The Fair Market Rent (FMR) for ZIP 45118 in fiscal year 2024 is set at $1120, which exceeds the current market rent of $872. This discrepancy suggests that properties in this area could potentially be rented at higher rates, particularly when considering Section 8 tenants who are bound by federal rent guidelines. However, the primary appeal of ZIP 45118 lies in its low price-cut share and non-applicable day Days on Market (DOM), indicating a stable housing market where property values are unlikely to decline significantly.
The median home value of $299,835 is another critical factor. While this figure might seem high compared to some other areas, the context of ZIP 45118's economic stability and low risk of depreciation makes it a sound investment. The median income of $97,963 further supports this notion, as it indicates a relatively affluent local population capable of maintaining property values and supporting local businesses.
A key point to consider is the 17.2% renter share, which, while not negligible, does not dominate the housing market. This suggests that homeownership remains strong in the area, contributing to overall property value stability. However, the low price-cut share and the fact that there is no applicable DOM data point towards a market where homes sell quickly at or near their listed prices, minimizing the need for significant price reductions and indicating robust demand.
In conclusion, ZIP 45118 should be viewed as an appreciation play within a Section 8 portfolio strategy. The combination of a stable housing market, low risk of depreciation, and the potential for rental income to match or exceed market rates make it a valuable asset for long-term growth. Although it offers a spread of $248 between the FMR and the current market rent, the primary focus should be on the long-term capital appreciation rather than short-term cash flow optimization.
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.