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 | $830 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $950 | $102,393 | 0.93% | C |
| 2BR | $1,150 | $147,347 | 0.78% | D |
| 3BR | $1,470 | $189,607 | 0.78% | D |
| 4BR | $1,580 | $249,789 | 0.63% | D |
| 5BR | $1,833 | $278,274 | 0.66% | D |
U.S. Census Bureau data (2024)
Elyria (ZIP 44035) serves as the historic county seat of Lorain County, offering investors an entry point into a market with significant industrial and healthcare roots. The local economy is bolstered by major institutions such as University Hospitals Elyria Medical Center, which provides a stable employment base and supports consistent rental demand. The city features a mix of historic architecture near the downtown district and more suburban-style developments further out, providing a diverse housing stock that appeals to various tenant demographics.
From a financial perspective, the numbers in 44035 reveal a tight but viable market. The HUD Fair Market Rent (FMR) for a 2-bedroom unit stands at $1,150, while current market rents (Zillow ZORI) lag slightly at $995, creating a $155 gap where vouchers can outpace the local market. Median home values are accessible at $182,799, with 2-bedroom properties specifically trading around $139,361. However, investors should note the moderate liquidity risk, as the median days on market sits at 38 days.
The tenant pool is substantial, driven by a 37.3% renter share and a median household income of $56,408. This income level suggests a population that may qualify for or require housing assistance, particularly as rents approach the broader Cleveland metro averages. Demand is further supported by local amenities, including the access provided by the Lorain County Transit system and the presence of the Elyria Public Library System, which enhance the neighborhood's livability for working families.
The Section 8 verdict for 44035 leans toward cashflow optimization. Because the HUD FMR exceeds the current market rent by $155, investors can secure guaranteed payments above standard market rates. Combined with the low acquisition cost of median 2-bedroom homes ($139,361), this spread offers a strong potential for immediate positive cash flow, provided investors can manage the 38-day turnover timeline efficiently.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.