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 | $1,390 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,510 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,910 | $274,014 | 0.7% | D |
| 3BR | $2,510 | $368,056 | 0.68% | D |
| 4BR | $2,840 | $682,110 | 0.42% | F |
| 5BR | $3,294 | $928,654 | 0.35% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 45249 (Sixteen Mile Stand, OH) provides a detailed look at potential investment returns based on the Fair Market Rent (FMR) and market rent figures. Using an annualized 2BR FMR of $1640 (for FY 2024), the gross yield can be calculated as follows:
$1640 x 12 months = $19,680 annual income.
With a median home value of $600,299, the implied gross yield for a Section 8 property would be:
$19,680 / $600,299 = 3.28%
Considering the market rent of $1,790 per month (ZORI), the annual income would be:
$1,790 x 12 months = $21,480 annual income.
The implied gross yield for a market-rent property would then be:
$21,480 / $600,299 = 3.58%
The renter density in ZIP 45249 is 33.2%, indicating a moderate level of renters in the area. While this doesn't directly impact the cap rate, it does suggest that there is a reasonable pool of potential tenants. The N/A-day DOM (Days on Market) figure suggests that either the data isn't available or the market is stable, with properties selling quickly once listed.
Given these factors, the market rent scenario offers a more realistic assessment of potential returns. Although the difference between the two yields is minimal, the higher gross yield of 3.58% aligns better with the expected performance of a property in this ZIP code. For investors, this means that while Section 8 properties provide steady income, they might consider the market rent option for a slightly higher yield, assuming they can maintain occupancy at those rates.
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.