Section 8 Fair Market Rent (FMR) for ZIP 45424 - 2027

Investment Score for ZIP 45424

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,000
1 Bedroom	$1,110
2 Bedrooms	$1,370
3 Bedrooms	$1,780
4 Bedrooms	$1,950
5 Bedrooms	$2,262
6 Bedrooms	$2,533
7 Bedrooms	$2,736
8 Bedrooms	$2,873

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,370	$158,713	0.86%	C
3BR	$1,780	$213,227	0.83%	C
4BR	$1,950	$276,454	0.71%	D
5BR	$2,262	$338,730	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 45424 (Huber Heights, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Huber Heights, OH (ZIP 45424), as of 2026, is set at $1400 for a two-bedroom unit. This amount represents approximately 20.8% of the median household income in the area, which stands at $80,605. The FMR is designed to reflect the average rent paid by tenants in the local housing market. However, it is important to note that the actual rents can vary significantly from these figures. For instance, the Zillow median price for a two-bedroom home in this ZIP code is $154,891, indicating a price-to-FMR ratio of 9.2x. This suggests that the actual rental market is likely to be higher than the FMR, potentially creating constraints for voucher holders who may struggle to find units within their budget. #### Affordability & Renter Profile In Huber Heights, 25.7% of the population are renters, which translates to about 12,990 individuals. Given the occupancy rate of 95.8%, the rental market appears to be relatively tight, with few vacant units available. The median household income of $80,605 provides insight into the economic profile of residents, suggesting that most households are middle-class. However, the FMR for a two-bedroom unit being only 20.8% of the median income indicates that a significant portion of the population could afford to rent such units without assistance. This implies that while there is a substantial number of renters, the market is not oversupplied, and competition for affordable units may be high. #### Investor Angle From an investor perspective, the FMRs provide a benchmark for cash flow potential. For a two-bedroom unit, the FMR is $1400 per month. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with property ownership, including mortgage payments, maintenance, utilities, and other costs. Assuming a conservative estimate of 75% of the Zillow median price as the purchase cost, a two-bedroom home would cost around $116,168. With a typical mortgage interest rate of 5%, the monthly payment on a 30-year fixed mortgage would be approximately $600. Adding another $200 for maintenance and utilities, the total monthly expense would be around $800. Therefore, the net cash flow at FMR would be $1400 - $800 = $600 per month, which is positive but relatively modest. The investment grade of a property in this ZIP code depends on several factors, including the stability of the rental market, the demand for affordable housing, and the overall economic health of the area. Given the tight occupancy rate and the significant number of renters, the demand for rental properties is likely to remain steady. However, the relatively low FMR compared to actual market rents may pose challenges for investors relying solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units, such as one-bedroom or studio apartments, where the FMR is lower ($1110). These units are more likely to be rented out at FMR levels, providing a better chance for positive cash flow. 2. **Target Lower-Income Neighborhoods**: Within the ZIP code, targeting neighborhoods with lower median incomes could help in finding tenants who are more likely to use Section 8 vouchers. This strategy would require a detailed analysis of neighborhood-level income data to identify areas with higher concentrations of voucher users. 3. **Consider Value-Add Opportunities**: Given the high price-to-FMR ratio, there may be opportunities to acquire properties below the Zillow median price and improve them to command higher rents. This approach could involve purchasing older homes and renovating them to meet modern standards, thereby increasing their rental value. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 45424 is to **Hold**. While the market offers some potential for positive cash flow, especially with smaller units, the high price-to-FMR ratio and the tight rental market suggest that acquiring properties at FMR levels may be challenging. Investors should carefully evaluate the local rental landscape and consider diversifying their portfolio to include both Section 8 and market-rate rentals to mitigate risk. Additionally, focusing on neighborhoods with lower median incomes and considering value-add strategies could enhance the feasibility of investing in this ZIP code.

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.