Location: Cleveland, OH | Metro: Cleveland, OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 44022 (Chagrin Falls, OH) for Section 8, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1,660 cover the debt service on a property valued at $584,734?
No: The FMR does not sufficiently cover the debt service on a property of that value. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property priced at $584,734, the FMR of $1,660 would likely be insufficient to ensure profitability.
Yes: Proceed to Step 2.
Step 2: How does the market rent of $1,396 compare to the FMR?
Market Rent Below FMR: The market rent of $1,396 is below the FMR of $1,660. This suggests that Section 8 tenants could potentially offer a higher rental income than what the market currently provides, making it a favorable option.
Market Rent Equal to or Above FMR: The market rent of $1,396 is below the FMR of $1,660, so this scenario does not apply. However, if the market rent were equal to or above the FMR, it would indicate that landlords might find it more profitable to seek market-rate tenants rather than relying solely on Section 8.
Step 3: Is there sufficient demand for Section 8 properties?
Yes: With 8.8% of residents being renters and an unknown but presumably low number of days on the market (DOM), there appears to be a steady demand for rental properties in Chagrin Falls. Given that the FMR exceeds the market rent, Section 8 properties could attract interested tenants.
No: If the demand is not substantial, landlords may struggle to fill their properties with Section 8 tenants. In this case, the answer is contingent upon the actual DOM figures, which are currently not available. However, with 8.8% of residents renting, it's reasonable to assume some level of demand exists.
It Depends: The decision hinges on the DOM figures. If the DOM is high, indicating slow turnover, the demand for Section 8 properties may not be robust. Conversely, a low DOM would suggest strong demand. Since the DOM is listed as N/A, this requires further investigation into local rental market dynamics.
In conclusion, if the FMR of $1,660 can cover the debt service on a $584,734 property and the market rent of $1,396 is below the FMR, then the next step is to assess the demand for Section 8 properties. With 8.8% of residents renting, the potential for demand is present, but it ultimately depends on the DOM figures to make a final decision.
Data Sources: FMR data from HUD (2027). 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.