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 | $113,470 | 0.91% | C |
| 2BR | $1,310 | $162,638 | 0.81% | C |
| 3BR | $1,720 | $219,709 | 0.78% | D |
| 4BR | $1,940 | $255,812 | 0.76% | D |
| 5BR | $2,250 | $287,090 | 0.78% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 45239 in Cincinnati, OH, provides a clear picture of potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $1,120 annually. To calculate the implied gross yield based on the FMR, divide the annual rental income by the median home value. For ZIP 45239, the median home value stands at $208,431.
The implied gross yield using the FMR is calculated as follows:
$1,120 / $208,431 = 0.00537 or approximately 0.54%.
In contrast, the Zillow Observed Rental Index (ZORI), which reflects market rents, indicates an average of $1,371 per month for a 2-bedroom apartment. Annualizing this figure gives us $16,452. Using the same median home value, the implied gross yield based on market rent is:
$16,452 / $208,431 = 0.079 or approximately 7.9%.
Given the 40.7% renter density in ZIP 45239, it's evident that there is a significant demand for rental properties. However, the 15-day Days on Market (DOM) suggests that properties are quickly rented out, indicating strong competition among landlords. This competition often drives rental rates closer to the ZORI rather than the FMR.
The disparity between the FMR and market rent yields highlights the importance of understanding local rental dynamics. While the FMR provides a baseline for government-subsidized housing, the market rent offers a more accurate representation of what tenants might actually pay. Therefore, for investment purposes, the gross yield of 7.9% derived from the ZORI is more realistic. This higher yield reflects the actual rental income landlords can expect in a competitive market, where subsidies may not be the primary factor influencing rental rates.
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.