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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,830 | $297,102 | 0.62% | D |
| 3BR | $2,340 | $384,162 | 0.61% | D |
| 4BR | $2,520 | $547,733 | 0.46% | F |
| 5BR | $2,923 | $839,268 | 0.35% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 44072, Novelty, OH, presents a unique setup for both landlords and small-portfolio investors. With a median home value of $441,229, the area reflects a stable residential market that has yet to show significant signs of listing reductions or changes in the median days on market (DOM), indicating a balanced seller-buyer relationship.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 44072 in fiscal year 2024 is set at $1,660. This figure stands notably higher than the current market average rent of $1,194, as reported by the Census Bureau's American Community Survey (ACS). This gap suggests an opportunity for landlords to potentially increase rents to align with government estimates, assuming the local economy supports such increases. However, it also highlights the importance of understanding the local rental demand and supply dynamics before making any adjustments.
For long-term investors, the data implies a mixed outlook regarding property appreciation. The lack of percentage data on listings being reduced and the median DOM suggests that the market is steady but not experiencing rapid growth or decline. This stability could be advantageous for those looking to hold properties for extended periods, as it reduces the risk of sudden price drops. However, it also means that significant capital appreciation might not be a strong component of the investment strategy in this area.
A realistic approach for long-hold investors would focus on the rental income potential rather than rapid appreciation. The disparity between the FMR and the current market rent provides a basis for improving cash flow through strategic rent management. Additionally, maintaining or slightly increasing property values over time can contribute to a solid long-term investment portfolio, especially if the broader economic conditions in Novelty, OH, improve.
To summarize, the median home value, combined with the FMR and current market rent data, indicates a market where landlords and investors can leverage rental income opportunities. While significant appreciation may not be imminent, the setup supports a conservative, value-focused investment strategy.
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.