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 | $740 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $221,223 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 45160 reveals a nuanced investment scenario for landlords and small-portfolio investors. Using the Federal Market Rent (FMR) for a 2-bedroom unit at $990 per month, the annualized rental income comes to $11,880. Given the median home value of $205,800, the implied gross yield from this perspective is approximately 5.77%. This calculation is based on the formula for gross yield: (Annual Rental Income / Property Value) * 100.
In contrast, when using the market rent figure of $291 per month, the annualized rental income drops significantly to $3,492. The implied gross yield in this case is only about 1.7%, which is substantially lower than the FMR-based yield. This stark difference highlights the importance of understanding the specific context of rental subsidies versus market rates when evaluating potential investments.
The 76.4% renter density in ZIP 45160 suggests a strong demand for rental properties, which could support higher occupancy rates and potentially more stable cash flows. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties might be leased under market conditions. Despite this uncertainty, the high renter density implies that there is a significant portion of the population relying on rentals, including those who might benefit from Section 8 vouchers.
Given these factors, the FMR-based gross yield of 5.77% appears more realistic for an investor considering a property in ZIP 45160 for Section 8 tenancy. This higher yield reflects the subsidy support that helps bridge the gap between affordable housing and market rents. While market rent yields are lower, they do not account for the additional stability and support that Section 8 provides, making them less attractive in this scenario.
Investors should carefully consider the trade-offs between market rent and FMR-supported rentals. The higher gross yield from FMR-supported units can be a compelling factor, especially in areas with high renter density where finding tenants is less challenging. However, it's important to note that the actual net operating income (NOI) will depend on various other factors such as maintenance costs, vacancy rates, and management expenses, which are beyond the scope of this analysis.
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.