Location: Cleveland, OH | Metro: Cleveland, OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
The ZIP code 44036, located in Elyria, OH, within the Cleveland, OH HUD Metro FMR area, can serve as a cash-flow anchor in a Section 8 portfolio strategy. The Fair Market Rent (FMR) for a 1-bedroom unit in ZIP 44036 for fiscal year 2024 is set at $1050. While specific market and median home value data for 44036 were not available, the listings on Zillow suggest that properties in this area are generally priced lower than the surrounding areas, with some homes listed for under $100,000.
Investing in properties within this price range can ensure a positive cash flow when rented out through the Section 8 program. For example, a property listed for $192,000 with three bedrooms and two bathrooms would be well within the budget for a Section 8 investment. The lower purchase cost compared to the FMR allows for a margin that covers expenses and provides a steady income stream.
This strategy is particularly useful for landlords and small-portfolio investors looking to stabilize their rental income. By anchoring a portion of their portfolio in ZIP 44036, they can rely on consistent government-backed rental payments, which are less volatile than market rents. This ensures predictability and security in their cash flow, essential for maintaining financial stability in real estate investments.
Data Sources: FMR data from HUD (2027).
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.