Location: Cleveland, OH | Metro: Cleveland, OH 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 | $1,330 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $304,361 | 0.6% | D |
| 3BR | $2,350 | $380,211 | 0.62% | D |
| 4BR | $2,540 | $555,714 | 0.46% | F |
| 5BR | $2,946 | $694,240 | 0.42% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 44011, located in Avon, Ohio, reveals a significant gap between the Fair Market Rent (FMR) and the market rent as measured by the Zillow Rent Index (ZORI). For fiscal year 2024, the FMR is set at $1630, while the average market rent stands at $2140. This represents a gap of $510, or approximately 24%, indicating that landlords can rent their properties to voucher tenants at a rate lower than the open-market rental price.
In Avon, where only 11.7% of residents are renters and the median home value is $471,636, the decision to participate in the Section 8 program should be carefully considered. The median household income in Avon is $135,915, suggesting a relatively affluent community. Despite this, the participation in Section 8 can still be attractive due to the stability it offers in terms of timely rent payments, backed by the government.
However, renting below the market rate comes with costs. Landlords must ensure that their properties meet the Housing Quality Standards (HQS) required by the Department of Housing and Urban Development (HUD), which may involve additional maintenance and renovation expenses. Moreover, the administrative burden of participating in the program, including the need to submit annual rent certifications and potential delays in receiving payments, can offset some of the benefits of guaranteed tenancy.
To illustrate the impact, consider a property that would typically rent for $2140 per month. By accepting a Section 8 tenant paying $1630, a landlord loses $510 in monthly income, or about $6120 annually. This reduction must be weighed against the security of having a tenant whose rent is subsidized and the potential long-term stability that comes with government-backed housing assistance.
In conclusion, while the gap between FMR and market rent in Avon, Ohio, makes renting to voucher tenants less lucrative compared to the open market, the program's benefits in terms of stability and reduced risk of vacancy can still make it an appealing option for landlords and small-portfolio investors seeking a steady stream of income without the volatility often associated with private rentals.
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.