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 | $1,240 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $212,440 | 0.8% | C |
| 3BR | $2,240 | $309,192 | 0.72% | D |
| 4BR | $2,520 | $445,203 | 0.57% | F |
| 5BR | $2,923 | $770,560 | 0.38% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 45255 in Cincinnati, OH, provides valuable insights into investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom unit is set at $1400 per month for FY 2024. To annualize this figure, we multiply it by 12, yielding an annual rental income of $16,800. Given the median home value in the area is $353,589, the implied gross yield for a Section 8 property would be approximately 4.75%. This calculation is derived by dividing the annual rental income ($16,800) by the median home value ($353,589).
In contrast, the market rent for a 2-bedroom unit, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,704 per month. Annualizing this rate gives us $20,448 in annual rental income. Using the same median home value of $353,589, the implied gross yield for a market-rate rental property is about 5.78%. This represents a higher potential return on investment compared to the Section 8 scenario.
Given the 34.3% renter density and the 22-day days-on-market (DOM), the market-rate rental scenario appears more realistic. The higher renter density suggests a larger pool of potential tenants, while the shorter DOM indicates quicker leasing times, both factors favoring market-rate rentals. However, the stability and predictability of Section 8 rents might still appeal to some investors looking for consistent cash flow over potentially higher yields.
To summarize, the gross yield for a Section 8 property in ZIP 45255 is 4.75%, whereas a market-rate rental property offers a gross yield of 5.78%. While market-rate rentals provide a higher gross yield, the decision should also consider the broader context of tenant demand and lease stability.
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.