Section 8 Fair Market Rent (FMR) for ZIP 45231 - 2027

Investment Score for ZIP 45231

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	$1,160
1 Bedroom	$1,240
2 Bedrooms	$1,590
3 Bedrooms	$2,090
4 Bedrooms	$2,360
5 Bedrooms	$2,738
6 Bedrooms	$3,067
7 Bedrooms	$3,312
8 Bedrooms	$3,478

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,240	$157,302	0.79%	D
2BR	$1,590	$181,099	0.88%	C
3BR	$2,090	$210,640	0.99%	C
4BR	$2,360	$271,455	0.87%	C
5BR	$2,738	$344,704	0.79%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 45231 (Cincinnati, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 45231 in Cincinnati, OH, is set by HUD for 2026. The FMRs for different bedroom sizes are as follows: - 0BR: $1030 - 1BR: $1130 - 2BR: $1460 (which is 24.6% of the median household income) - 3BR: $1930 - 4BR: $2130 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent. However, the actual rents in the area must be compared to these FMRs to understand the dynamics. For instance, the Zillow median price for a 2BR home is $177,485, which translates to a monthly mortgage payment of approximately $739 based on a 4.5% interest rate and a 30-year fixed mortgage. This is significantly lower than the FMR of $1460 for a 2BR unit, suggesting that landlords who participate in the Section 8 program can potentially charge close to the FMR without exceeding the typical rental market rates. However, there are constraints for voucher holders. They cannot find units that exceed the FMR, meaning they would have difficulty securing a 3BR or 4BR unit at the current FMR levels unless they supplement the voucher with additional income. This could limit their housing options, particularly if they need larger units. #### Affordability & Renter Profile ZIP code 45231 has a population of 40,463, with 27.4% of residents being renters. The occupancy rate is quite high at 96.6%, indicating a tight rental market. Given that the median household income is $71,353, the 2BR FMR of $1460 represents 24.6% of this income. This suggests that while the FMR is relatively affordable for the average household, it still places a significant burden on those relying solely on vouchers. The renter profile in this area likely includes low-income families, single individuals, and possibly some students or young professionals. The high occupancy rate implies that there is little vacancy, making it a competitive market for both tenants and landlords. This tightness could also mean that landlords have less incentive to accept Section 8 vouchers, as they can easily find non-voucher tenants willing to pay market rates. #### Investor Angle From an investor's perspective, the key question is whether the FMR allows for positive cash flow when considering the purchase price and associated costs. The Zillow median price for a 2BR home is $177,485, and the FMR for a 2BR unit is $1460. To determine the cash flow potential, we need to consider the total cost of ownership, including property taxes, insurance, maintenance, and financing costs. Assuming a conservative estimate of 1% annual property tax ($1774.85), $800 annual insurance, and $300 monthly maintenance, the total monthly expenses would be approximately $791.50 ($1774.85/12 + $800/12 + $300). With a mortgage payment of around $739, the total monthly cost would be about $1530.50. At the FMR of $1460, this would result in a negative cash flow of about $70.50 per month. Given this, the investment grade for properties in ZIP 45231 would be considered marginal. While the FMR is higher than the mortgage payment, the additional expenses reduce the profitability. Investors should carefully evaluate the potential for appreciation and long-term stability before committing to this market. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Since the FMR for 0BR and 1BR units is significantly lower than the Zillow median price, investors might consider focusing on smaller units. A 1BR unit with an FMR of $1130 could still provide positive cash flow if the purchase price is below the Zillow median. For example, a 1BR unit purchased for $120,000 would have a mortgage payment of approximately $550, leaving a potential positive cash flow of $579.50 per month after accounting for other expenses. 2. **Consider Multi-Family Properties**: Multi-family properties can offer better cash flow opportunities due to economies of scale. An investor might look into purchasing a small apartment building where the combined rent from multiple units could cover the overall expenses. For instance, a two-unit building with each unit renting at the 2BR FMR of $1460 would generate $2920 in monthly income, which could cover the mortgage payments and other expenses more effectively. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 45231 is to **Hold**. While the FMRs are set above typical rental market rates, the high occupancy and tight market conditions suggest that landlords may prefer non-voucher tenants. Additionally, the cash flow potential is marginal, especially for larger units. Investors should focus on smaller units or multi-family properties to maximize profitability. However, given the high demand and limited supply, appreciation potential could still make this a viable investment over the long term.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.