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 | $1,210 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $207,210 | 0.8% | C |
| 3BR | $2,180 | $235,831 | 0.92% | C |
| 4BR | $2,460 | $336,513 | 0.73% | D |
| 5BR | $2,854 | $696,697 | 0.41% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating whether to purchase properties in ZIP 45246 (Springdale, OH) for Section 8 investment hinges on three key factors: Fair Market Rent (FMR), market rent, and rental demand.
1) Does the FMR of $1430 cover the debt service on a $248,025 property?
Yes: The FMR of $1430 is sufficient to cover the debt service on a property valued at $248,025. This indicates that a landlord can expect to meet their financial obligations with the rental income generated from a Section 8 tenant.
No: The FMR of $1430 does not cover the debt service on a property priced at $248,025. This means that relying solely on Section 8 tenants would result in insufficient income to meet the mortgage and other financial obligations. Consideration should be given to other sources of rental income or properties with lower acquisition costs.
It Depends: The feasibility of covering debt service with the FMR of $1430 requires an analysis of the specific terms of the mortgage, including interest rates and loan duration. If the terms are favorable, the FMR might still suffice. Otherwise, the landlord risks financial strain.
2) Is the market rent of $1,655 (ZORI) above, at, or below the FMR?
Above: The ZORI of $1,655 exceeds the FMR of $1430, suggesting that there is potential to earn higher rents from non-Section 8 tenants. However, this also implies that Section 8 tenants may struggle to find housing in this area due to the gap between market rent and FMR.
At or Below: If the market rent aligns closely with or falls below the FMR, then the disparity between what a Section 8 tenant can afford and the actual market rate is minimal. This scenario supports the idea that landlords can attract both Section 8 and market-rate tenants without significant adjustments to their pricing strategy.
3) Are 43.4% renters combined with an unspecified number of days on the market (DOM) indicative of enough demand?
Yes: With 43.4% of residents being renters, there is a substantial portion of the population who may seek rental housing. The lack of DOM data makes it impossible to assess how quickly properties are rented out, but the high percentage of renters suggests strong demand for rental units in Springdale, OH.
No: If the DOM is excessively high, indicating slow turnover of rental properties, the high percentage of renters alone may not justify purchasing properties in ZIP 45246. Landlords need to ensure that they can efficiently lease their properties to maintain steady cash flow.
It Depends: The decision hinges on the balance between the percentage of renters and the DOM. A high percentage of renters coupled with low DOM would indicate a robust demand for rentals, whereas a high percentage of renters with high DOM would suggest challenges in leasing properties promptly.
In conclusion, the decision to invest in ZIP 45246 for Section 8 properties is contingent upon the interplay of these factors. Careful consideration of each branch will guide landlords toward making informed investment decisions based on the available data.
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.