Section 8 Fair Market Rent (FMR) for ZIP 45140 - 2027

Investment Score for ZIP 45140

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

Unit Size	Monthly FMR
Studio	$1,340
1 Bedroom	$1,440
2 Bedrooms	$1,840
3 Bedrooms	$2,420
4 Bedrooms	$2,730
5 Bedrooms	$3,167
6 Bedrooms	$3,547
7 Bedrooms	$3,831
8 Bedrooms	$4,023

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,840	$250,715	0.73%	D
3BR	$2,420	$348,557	0.69%	D
4BR	$2,730	$556,926	0.49%	F
5BR	$3,167	$745,357	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 45140 (Loveland, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 45140 is set by HUD for 2026, with specific rates for different bedroom sizes. The FMR for a two-bedroom unit is $1710, which represents 17.9% of the median household income of $114,827. This indicates that the rent for a two-bedroom unit is relatively affordable compared to the average income in the area. However, the actual rental market prices can be significantly higher. For instance, the Zillow median price for a two-bedroom home in Loveland is $246,784, which translates into a monthly mortgage payment of approximately $1230 if financed over 30 years at a typical interest rate. Given the price-to-FMR ratio of 12.0x, it suggests that the actual rental costs are much higher than the FMR, potentially creating a significant constraint for voucher holders who are limited to paying no more than the FMR rate. #### Affordability & Renter Profile With a population of 57,211 and a renter percentage of 19.6%, Loveland has a relatively small rental market. The occupancy rate of 96.2% implies that the rental market is quite tight, with few vacancies available. This tightness could be due to the high demand for rental properties relative to supply, or it might reflect the overall desirability of the area. Given the median household income of $114,827, renters in this ZIP code are likely to be middle-class individuals or families who can afford higher rents but may still benefit from the Section 8 program. The FMR for a three-bedroom unit is $2260, which is 19.7% of the median income, indicating that even larger units are somewhat affordable for the average resident. However, the high price-to-FMR ratio suggests that the market is not particularly favorable for low-income renters without substantial assistance. #### Investor Angle From an investor’s perspective, the ZIP code 45140 presents a challenging scenario. The FMR for a two-bedroom unit is $1710, while the actual median rental price is much higher, around $246,784 for a home. If we consider the typical rental yield for a property, the actual rental income would need to be significantly higher to justify the purchase price. The price-to-FMR ratio of 12.0x indicates that the actual rental market is far above what HUD considers fair, making it difficult for investors to achieve positive cash flow when relying solely on FMR rates. Given these factors, the investment grade for this ZIP code is low for Section 8-focused investors. The high purchase prices and the tight rental market mean that securing tenants willing to pay the FMR rate is unlikely, especially considering the limited number of vouchers available. Investors should carefully evaluate the potential for long-term appreciation and the ability to attract non-voucher tenants willing to pay higher rents. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given that the FMR for a three-bedroom unit is $2260, which is closer to the median income percentage, investors might find better success with larger units. These units are more likely to be occupied by families who can afford higher rents but may still qualify for Section 8 assistance. The FMR for a four-bedroom unit is $2500, which could also be a viable option. 2. **Consider Non-Voucher Tenants**: Due to the high price-to-FMR ratio, investors should explore opportunities to lease properties to non-voucher tenants who can pay market rates. This will likely provide a more stable and profitable cash flow. The median income in the area supports the possibility of attracting middle-class renters who can afford higher rents. 3. **Evaluate Long-Term Appreciation**: While the current rental market is tight and the FMR rates are lower than market rates, investors should look at the potential for long-term appreciation. If property values continue to rise, the investment could become more attractive over time, even if initial cash flow is negative. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow using only FMR rates. Instead, investors should consider areas where the FMR is closer to the actual rental market prices, or they should focus on attracting non-voucher tenants willing to pay market rates. Alternatively, investors might want to hold onto existing properties in this ZIP code if they already have a strong tenant base, but new investments should be approached with caution.

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.