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 | $1,580 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,160 |
| 3 Bedrooms | $2,840 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,160 | $258,519 | 0.84% | C |
| 3BR | $2,840 | $415,347 | 0.68% | D |
| 4BR | $3,210 | $684,810 | 0.47% | F |
| 5BR | $3,724 | $930,990 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 45242, centered around Montgomery, OH, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. For fiscal year 2024, the FMR stands at $1790, while the actual market rent, as measured by the Zillow Observed Rent Index (ZORI), is $1980. This discrepancy amounts to a difference of $190, or approximately 10.6%, between what the government deems fair and what the market demands.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must be aware of the financial implications when accepting housing vouchers. The cost of housing voucher tenants below open-market rates means that landlords will need to adjust their strategies to ensure profitability. In Montgomery, OH, where 21.7% of residents are renters, the median home value is $548,111, and the median household income is $124,567, the decision to accept Section 8 vouchers should be carefully weighed against the potential for higher yields from market-rate rentals.
To illustrate the impact, consider a property valued at the median home price. If rented at the FMR, the landlord would miss out on an additional $190 per month compared to renting it at the market rate. Over a year, this translates into a loss of $2,280. However, the benefits of stable, government-backed rental income might outweigh the immediate financial shortfall, especially given the local context where a significant portion of the population relies on rental housing.
In conclusion, the gap between the FMR and market rent in ZIP 45242 presents both challenges and opportunities for landlords and small-portfolio investors. While the immediate cost of housing voucher tenants below market rates is clear, the long-term stability and the broader economic context of Montgomery, OH, offer a nuanced perspective on the viability of Section 8 properties in this area.
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.