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 | $960 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,030 | $145,561 | 0.71% | D |
| 2BR | $1,310 | $240,948 | 0.54% | F |
| 3BR | $1,720 | $310,175 | 0.55% | F |
| 4BR | $1,940 | $366,186 | 0.53% | F |
| 5BR | $2,250 | $571,727 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 45206, located in Cincinnati, OH, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) set by HUD for the Cincinnati, OH-KY-IN HUD Metro FMR Area for fiscal year 2024, which is $1080, and the actual market rent of $1,520. The difference of $440 per month represents a substantial gap that landlords can leverage to ensure steady and reliable cash flow.
The median home value in ZIP 45206 is $259,237, indicating a relatively stable housing market. However, the focus for a Section 8 portfolio should be on rental properties, where the guaranteed payment from the government helps mitigate risks associated with tenant defaults. The lower FMR compared to market rents means that landlords can participate in the Section 8 program while still maintaining a buffer for unexpected expenses or economic downturns.
Additionally, the ZIP code has a median income of $62,648, which supports the presence of low-income households eligible for the Section 8 program. With a renter share of 63.0%, there is a strong demand for rental properties, further stabilizing the cash flow potential.
The price-cut share of 0.2% and the lack of data for days on market (DOM) suggest that property values are generally stable and that homes do not typically linger unsold on the market, which is beneficial for those looking to maintain consistent income streams through rentals rather than speculative home purchases.
In conclusion, ZIP 45206 provides a solid foundation for a Section 8 portfolio due to its ability to serve as a cash-flow anchor. The guaranteed payments at a rate below the market rent ensure financial stability and reliability, making it an attractive option for landlords and small-portfolio investors seeking consistent returns.
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.