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 | $940 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $217,890 | 0.52% | F |
| 3BR | $1,460 | $273,944 | 0.53% | F |
| 4BR | $1,570 | $329,283 | 0.48% | F |
| 5BR | $1,821 | $382,825 | 0.48% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 44074, which includes Oberlin, OH, and is part of the Cleveland, OH HUD Metro FMR Area, stands at $1080 for fiscal year 2024. In contrast, the market rent as per the Census ACS data is lower, at $964. This indicates that landlords participating in the Section 8 program can expect to cashflow positively at the HUD FMR rate, as it exceeds the current market rent by $116.
To further analyze the investment potential, consider the median home value in ZIP 44074, which is $271,459. The rent-to-price ratio can be calculated using the HUD FMR: dividing the annual FMR ($1080 * 12 months = $12,960) by the median home value yields approximately 4.8%. This suggests that rental income represents a significant portion of the property's value, making it a viable option for investors seeking steady cash flow.
The dynamics of rent versus buying in this area also support the viability of Section 8 investments. The median days on market (DOM) is noted as N/A, indicating either insufficient data or a stable housing market where properties do not linger unsold. Additionally, the share of homes that require a price cut is an extremely low 0.1%, suggesting strong demand and minimal need for concessions. These factors imply a robust market where both rental and ownership opportunities are favorable.
In summary, given the positive cash flow potential and the strong demand for housing in ZIP 44074, the most compelling angle for Section 8 investors is the stability of returns. Landlords can expect consistent cash flow without the risks associated with volatile markets, making this area ideal for those prioritizing reliable income over rapid appreciation.
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.