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 | $810 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $108,868 | 1.02% | B |
| 3BR | $1,420 | $136,059 | 1.04% | B |
| 4BR | $1,530 | $133,852 | 1.14% | B |
| 5BR | $1,775 | $148,551 | 1.19% | B |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 44055, located in Lorain, Ohio, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1000, while the Zillow Observed Rental Index (ZORI) indicates a market rent of $1198. This means there is a gap of $198 between the two figures, representing a 19.8% difference.
The lower FMR compared to the market rent suggests that landlords who accept housing vouchers could be foregoing significant revenue. In an environment where the median home value is $123,998 and the median income is $40,636, accepting voucher tenants at rates below the open-market levels can impact profitability. Given that 47.3% of residents in Lorain are renters, the demand for rental properties is substantial, but the supply must be carefully managed to ensure financial viability.
To illustrate the financial implications, consider a landlord with a property valued at the median home value of $123,998. If they were to rent this property at the FMR rate of $1000, they would be earning less than if they rented it at the market rate of $1198. Over the course of a year, this difference amounts to nearly $2400 in lost income per unit. While accepting Section 8 vouchers provides a stable tenant base and consistent rental income, the lower rent rates mean that landlords and small-portfolio investors must carefully evaluate their costs and yields.
In conclusion, the gap between the FMR and market rent in ZIP 44055 presents a challenge for landlords. The decision to participate in the Section 8 program should be weighed against the potential loss of income, especially considering the local economic conditions in Lorain, Ohio. Landlords must determine whether the benefits of stable tenancy outweigh the financial impact of renting below market rates.
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.