In this paper, we propose a low-complexity peak-to-average power ratio (PAPR) reduction scheme that combines both multi-band (MB)-Hadamard precoding and clipping for the optical orthogonal frequency division multiplexing (OFDM) systems. Approximations of PAPR distribution for baseband OFDM signals are analyzed and the effective signal-to-noise ratio (SNR) of the whole transmission link considering both the clipping and quantization noise are presented. After that, the MB-Hadamard precoding is adopted to compresses the peak signals, minimizing the contaminating influence of signal distortions in subsequent clipping operations. In addition, the received SNRs and bit error rate (BER) are calculated theoretically for each split sub-band. The 50-m step-index polymer optical fiber (POF) transmission is adopted as a special case to both evaluate the system performance and then compare the proposed scheme with other well-known PAPR reduction techniques. With this scheme, the PAPR is reduced effectively and the system's BER performance is improved significantly. The results show that the proposed scheme with appropriate number of sub-bands precoding provides favorable trade-offs among PAPR reduction, power spectral density, transmission rate, BER, and computational complexity, which demonstrates its feasibility and validity.