Location: Switzerland County, IN | 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 | $790 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $305,231 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 47017 provides a clear picture of potential investment returns in the area. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $990 per month. This translates to an annualized rental income of $11,880. Given the median home value of $302,319 in the area, we can calculate the implied gross yield for a Section 8 property.
To find the gross yield, we divide the annual rental income by the property value. In this case, the gross yield would be approximately 3.93%. This figure is derived by dividing $11,880 by $302,319. However, it's important to note that the actual market rent is not available, which means we cannot compare the Section 8 rental rate to what might be achievable in the open market. If market rents were higher, the gross yield for a non-Section 8 property would also be higher, thus making the Section 8 option less attractive.
The renter density in ZIP 47017 stands at 4.2%, indicating a relatively low percentage of the population seeking rental housing. This factor could influence the demand for Section 8 properties and the time a property spends on the market before being rented. The Days on Market (DOM) information is not available, which makes it difficult to assess how quickly a Section 8 property might be occupied once listed. However, given the low renter density, it's reasonable to assume that finding a tenant could take longer than in areas with higher rental demand.
In conclusion, the Section 8 cap-rate scenario for ZIP 47017 implies a gross yield of about 3.93%. While this is a straightforward calculation based on the FMR and median home value, it does not account for the potential higher yields from market rents or the challenges posed by the low renter density. Investors should consider these factors when deciding whether to pursue Section 8 investments in this 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.