Section 8 Fair Market Rent (FMR) for ZIP 45227 - 2027

Location: Cincinnati, OH | Metro: Cincinnati, OH-KY-IN HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

18,893

Median Household Income

$71,646

Housing Units

9,617

Renter Percentage

44.5%

Occupancy Rate

94.1%

Renter Occupied

4,031

Housing Authorities Serving ZIP 45227

Cincinnati Metropolitan Housing Authority (Cincinnati, OH) - 12,013 Section 8 vouchers

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?

Yes: With 44.5% of the population being renters, there is a substantial rental market. A 22-day Days on Market (DOM) indicates relatively quick turnover, suggesting strong demand for rental units in the area.

Given these factors, the decision tree branches as follows:

If the FMR does not cover your debt service, do not buy here for Section 8 without additional income sources.
If the market rent is above FMR, consider the potential for higher rents with non-Section 8 tenants, but be aware of the regulations.
If the rental demand is high, as indicated by the percentage of renters and low DOM, proceed cautiously, ensuring you understand the local market dynamics and the implications for Section 8 properties.

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). 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.