Section 8 Fair Market Rent (FMR) for ZIP 45238 - 2027

Investment Score for ZIP 45238

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	$930
1 Bedroom	$1,000
2 Bedrooms	$1,280
3 Bedrooms	$1,680
4 Bedrooms	$1,900
5 Bedrooms	$2,204
6 Bedrooms	$2,468
7 Bedrooms	$2,665
8 Bedrooms	$2,798

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	$1,000	$128,758	0.78%	D
2BR	$1,280	$173,321	0.74%	D
3BR	$1,680	$225,880	0.74%	D
4BR	$1,900	$269,070	0.71%	D
5BR	$2,204	$327,381	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 45238 (Cincinnati, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 45238 is set by HUD for 2026, providing a benchmark for rental costs in the area. The FMRs are as follows: - 0BR: $860 - 1BR: $950 - 2BR: $1220 - 3BR: $1610 - 4BR: $1780 These figures represent the maximum rent that a household can pay using their Section 8 housing voucher. However, actual rents in the market may exceed these amounts, which can create financial constraints for voucher holders. For instance, the FMR for a 2BR unit is $1220, but the Zillow median price for a 2BR home is $170,227, indicating a significant disparity between the FMR and the actual cost of renting. This suggests that many landlords might not accept Section 8 vouchers due to the lower rent ceilings compared to market rates. #### Affordability & Renter Profile ZIP code 45238 has a population of 48,351, with 40.3% of residents being renters. The occupancy rate stands at 95.0%, indicating a relatively tight rental market. Given that the median household income is $66,277, the affordability of a 2BR unit at $1220 per month is a concern. Specifically, the 2BR FMR represents 22.1% of the median income, which is a significant portion of a household’s budget. This makes it challenging for low-income families to afford even the FMR rates without additional subsidies. The high rent-to-income ratio and the tight occupancy rate suggest that the market is competitive for renters. Landlords may have leverage to charge higher rents, making it difficult for voucher holders to find suitable housing. Additionally, the high proportion of renters indicates a strong demand for rental properties, which could lead to upward pressure on rents. #### Investor Angle From an investor perspective, the ZIP code 45238 offers mixed opportunities. The price-to-FMR ratio for a 2BR unit is 11.6x, meaning that the median home price ($170,227) is significantly higher than the FMR ($1220). This ratio suggests that purchasing a property for rental purposes would be costly relative to the potential rental income from a Section 8 voucher holder. To determine if the ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a conservative estimate of 10% of the purchase price for annual expenses (excluding mortgage), the total annual cost for a 2BR unit would be around $17,022.70. At the FMR of $1220 per month, the annual rental income would be $14,640, resulting in a negative cash flow of approximately $2,382.70 per year before accounting for mortgage payments. Given the high purchase price and the limited rental income from Section 8 vouchers, the investment grade for this ZIP code is likely to be low. Investors focusing solely on Section 8 vouchers may struggle to achieve positive cash flow, especially if they are financing their purchases. #### Specific Actionable Insights 1. **Landlord Acceptance**: Given the tight rental market and the high rent-to-income ratio, landlords may be reluctant to accept Section 8 vouchers. To attract more landlords, investors might consider offering additional incentives such as higher security deposits or upfront rent payments to cover the gap between FMR and market rates. 2. **Property Type Focus**: Investors should focus on properties that are most aligned with the FMRs. For example, 0BR and 1BR units are less expensive to maintain and might offer better cash flow opportunities. A 1BR unit at $950 per month would generate $11,400 annually, which could be more manageable given the high purchase price. 3. **Alternative Investment Strategies**: Instead of relying solely on Section 8 vouchers, investors might consider diversifying their tenant mix. They could target a combination of voucher holders and other low-income tenants who might be willing to pay slightly above FMR but still below market rates. This approach could help balance the cash flow and reduce the risk of vacancy. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 45238 is to **Skip**. The high purchase prices and the limited rental income from Section 8 vouchers make it challenging to achieve positive cash flow. Additionally, the tight rental market and high rent-to-income ratio suggest that landlords may prefer market-rate tenants over those with vouchers. Investors looking to enter this market should carefully evaluate their strategies and consider alternative approaches to ensure profitability.

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.