Location: Cincinnati, OH | Metro: Cincinnati, OH-KY-IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
The analysis for ZIP code 45253 in Ohio reveals some limitations due to missing data points, particularly regarding median home values and specific rental metrics. However, using the available Fair Market Rent (FMR) data for a two-bedroom apartment at $1150 per month for fiscal year 2024, we can still provide a rough outline of the potential Section 8 cap-rate scenario.
To start, annualizing the FMR for a two-bedroom unit yields a yearly rent of $13,800 ($1150 x 12 months). This figure represents the gross income potential for a property under the Section 8 program. The implied gross yield in this context would be calculated by dividing the annualized rent by the median home value. Unfortunately, the median home value for ZIP 45253 is not available, making it impossible to calculate an exact cap rate. However, if we assume a typical median home value for a similar area, we can illustrate how the calculation might work.
For instance, if the median home value were $276,000 (which is twice the annualized FMR), the implied gross yield would be 5% ($13,800 / $276,000). This is a theoretical example; actual yields depend on the real median home values in the area. The lack of market rent data means that a direct comparison to non-subsidized rental income cannot be made, which is crucial for understanding the broader investment landscape.
The missing renter density percentage and days on market (DOM) figures further complicate the analysis. Renter density typically indicates the proportion of renters in the population, while DOM reflects how quickly properties are rented out. Without these specifics, it's challenging to assess the likelihood of finding tenants who qualify for the Section 8 program and the speed at which a property could be occupied.
In conclusion, while the annualized FMR provides a clear benchmark for potential Section 8 income at $13,800 per year, the absence of key data points such as median home value, market rent, and demographic specifics makes it difficult to draw a precise cap-rate picture for ZIP 45253. Landlords and small-portfolio investors should seek additional local market insights to complement this analysis and make informed decisions.
Data Sources: FMR data from HUD (2027).
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.