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 | $1,170 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $227,687 | 0.71% | D |
| 3BR | $2,120 | $296,713 | 0.71% | D |
| 4BR | $2,390 | $498,082 | 0.48% | F |
| 5BR | $2,772 | $689,671 | 0.4% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP 45227 (Cincinnati, OH) for Section 8 properties starts with three key questions. Let's break down the analysis using the provided data points.
1. Does FMR $1380 (zip FY 2024) clear debt service on a $286,868 property?
No. To determine if the Fair Market Rent (FMR) of $1380 clears the debt service, we need to calculate the annual debt service based on typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at 5%, the monthly payment on a $286,868 property would be approximately $1,500. This does not include property taxes, insurance, and maintenance costs, which can add another $200-$300 per month. Therefore, the total monthly cost would be around $1,800, which exceeds the FMR of $1380. The answer is clearly no, unless there are significant subsidies or other income sources that make up the difference.
2. Is market rent $1,622 (ZORI) above, at, or below FMR?
The market rent of $1,622 is above the FMR of $1380. This suggests that landlords could potentially charge more than the FMR for non-Section 8 tenants, but they must ensure compliance with local housing authority rules regarding the percentage of the unit's rent that can exceed the FMR for Section 8 eligibility.
3. Are 44.5% renters + 22-day DOM enough demand?
Given these factors, the decision tree branches as follows:
In conclusion, ZIP 45227 presents a mixed scenario for Section 8 investment. While the rental demand appears robust, the FMR may not sufficiently cover the debt service on a $286,868 property. Investors should carefully evaluate their financial situation and consider diversifying their tenant base beyond Section 8 to ensure profitability.
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.