Location: Cleveland, OH | Metro: Cleveland, OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
The Section 8 thesis for real estate investment in ZIP code 44052, located in Lorain, Ohio, is based on the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1010, while the market rent, as measured by Zillow's Observed Rental Index (ZORI), stands at $1,132. This creates a gap of $122, or approximately 12%, where landlords can potentially offer lower rents to attract voucher tenants without significantly reducing their yields.
In Lorain, where 46.0% of residents are renters, the median home value is $136,732 and the median income is $45,023. These figures indicate a modest economic environment that may benefit from the stability and demand generated by Section 8 voucher holders. The FMR being lower than the market rent means that landlords who accept vouchers will be renting out properties at a rate below what they could charge on the open market. However, this strategy can still be profitable due to the guaranteed monthly payments from the government, which reduces the risk of unpaid rent and tenant turnover.
While accepting Section 8 tenants can lead to a slightly reduced rental income compared to market rates, the benefits include a consistent stream of income and the potential to fill vacancies quickly in an area where a significant portion of the population relies on rental assistance. Landlords and small-portfolio investors should consider these factors when evaluating the viability of Section 8 properties in ZIP 44052.
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.