Location: Dayton-Kettering-Beavercreek, 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 | $1,120 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $172,804 | 0.89% | C |
| 3BR | $2,000 | $265,098 | 0.75% | D |
| 4BR | $2,190 | $355,712 | 0.62% | D |
| 5BR | $2,540 | $398,176 | 0.64% | D |
U.S. Census Bureau data (2024)
A landlord considering ZIP 45342 (Miamisburg, OH) for Section 8 investments must follow a structured decision-making process based on the following criteria:
1. Debt Service Coverage Ratio (DSCR): The Fair Market Rent (FMR) for ZIP 45342 in fiscal year 2024 is set at $1220 per month. To determine if this figure clears the debt service on a property valued at $259,680, one must calculate the expected monthly mortgage payment. Assuming a typical interest rate of around 4.5% and a 30-year fixed-rate mortgage, the monthly mortgage payment would be approximately $1290. Given that the FMR is $1220, it does not fully cover the debt service, resulting in a negative cash flow of $70 per month. Therefore, the answer to the first question is No.
2. Market Rent Comparison (ZORI): The Zillow Rent Index (ZORI) for the area indicates an average market rent of $1297. This figure is slightly above the FMR of $1220, suggesting that landlords can potentially charge a premium over the FMR when renting to non-Section 8 tenants. However, since the FMR does not cover the debt service, relying on market rents to make up the difference is risky unless the landlord has a strong understanding of the local rental market and can ensure high occupancy rates. The answer to the second question is It Depends, as it hinges on the landlord's ability to manage market fluctuations and maintain occupancy.
3. Rental Demand: In ZIP 45342, 34.9% of residents are renters, and the days on market (DOM) for rentals stands at 12 days. These figures suggest a relatively robust rental market with good demand. However, given that the FMR does not cover the debt service, the demand alone is insufficient to justify an investment without addressing the negative cash flow issue. The answer to the third question is No, because even with strong demand, the financial viability of a Section 8 investment is compromised by the inability of the FMR to cover the mortgage payments.
To summarize, the decision tree for investing in ZIP 45342 for Section 8 properties is as follows:
The analysis clearly shows that ZIP 45342 is not financially viable for Section 8 investments under the current conditions. Landlords should seek areas where the FMR exceeds the required debt service or consider other investment strategies that align better with the financial realities of the area.
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.