Section 8 Fair Market Rent (FMR) for ZIP 44077 - 2027

Investment Score for ZIP 44077

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$890
1 Bedroom	$1,010
2 Bedrooms	$1,230
3 Bedrooms	$1,570
4 Bedrooms	$1,690
5 Bedrooms	$1,960
6 Bedrooms	$2,195
7 Bedrooms	$2,371
8 Bedrooms	$2,490

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,010	$127,528	0.79%	D
2BR	$1,230	$178,420	0.69%	D
3BR	$1,570	$247,589	0.63%	D
4BR	$1,690	$371,562	0.45%	F
5BR	$1,960	$458,926	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 44077 (Painesville, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 44077 in Painesville, Ohio, indicate that the rent for a two-bedroom unit is set at $1230 per month. This represents 17.4% of the median household income of $85,056, which suggests that the FMR is relatively affordable compared to local incomes. However, the actual rental market dynamics can be quite different. The Zillow median price for a two-bedroom property in this ZIP code is $172,646, which translates into a price-to-FMR ratio of 11.7x. This high ratio implies that the cost of purchasing a rental property significantly exceeds the FMR, potentially creating challenges for landlords who rely on Section 8 vouchers to cover their costs. Given that the occupancy rate is 95.2%, it indicates a strong demand for housing in the area. However, the 25.7% renter population suggests that there is a substantial portion of the community that relies on rental housing. For voucher holders, the $1230 FMR for a two-bedroom unit might be a constraint if the actual market rents exceed this amount. Landlords may find it challenging to attract voucher holders if they are charging above the FMR, especially in a competitive market like Painesville where demand is high. #### Affordability & Renter Profile The median household income of $85,056 in Painesville provides a context for affordability. With 25.7% of the population being renters, the market has a significant number of individuals and families who depend on rental housing. Given the FMR for a two-bedroom unit at $1230, which is 17.4% of the median income, it suggests that renters in this ZIP code should be able to afford housing without too much financial strain. However, the high price-to-FMR ratio of 11.7x indicates that the cost of owning a rental property is considerably higher than the rent that can be charged under the FMR guidelines. This could make it difficult for some potential renters to find affordable units, particularly if landlords are unwilling to accept lower rents due to the high purchase costs. The tight market conditions, with an occupancy rate of 95.2%, suggest that there is little room for vacancy. This means that any new rental properties entering the market would likely be quickly occupied, but also that existing landlords have limited flexibility to reduce rents. The high demand for rental housing could put upward pressure on actual market rents, making it even harder for voucher holders to find suitable units. #### Investor Angle From an investor’s perspective, the ZIP code 44077 presents a mixed picture. While the occupancy rate is high, indicating strong demand, the price-to-FMR ratio of 11.7x suggests that the initial investment cost is very high relative to the potential rental income. This high ratio could lead to negative cash flow for investors who are relying solely on FMR-based rents. To break even or achieve positive cash flow, landlords would need to charge rents above the FMR, which could limit their ability to attract voucher holders. The investment grade for this ZIP code would likely be considered low due to the high purchase costs and the potential difficulty in finding tenants willing to pay the full FMR. Investors looking to enter this market should carefully consider the financial implications and possibly seek alternative sources of income beyond just rental payments to ensure profitability. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1020, which is still a significant portion of the median income but may offer better cash flow opportunities compared to larger units. Additionally, the lower purchase cost for smaller units could help mitigate the negative impact of the high price-to-FMR ratio. 2. **Consider Mixed-Income Developments**: Instead of relying solely on Section 8 vouchers, investors could explore developing mixed-income housing projects. This approach allows for a combination of market-rate rentals and subsidized units, which can help balance out the financial risks associated with FMR-based rents. By attracting a mix of tenants, investors can diversify their revenue streams and improve overall cash flow. 3. **Evaluate Long-Term Trends**: Although the current market conditions suggest a tight rental market, it is important to evaluate long-term trends. If the population growth continues and median income levels rise, the affordability of housing could improve over time. Investors should conduct a thorough analysis of demographic and economic forecasts to determine if the market will become more favorable in the future. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 44077 is to **Skip**. The high price-to-FMR ratio makes it challenging to achieve positive cash flow, and the tight market conditions may limit the availability of suitable rental units for voucher holders. While there is strong demand for rental housing, the financial constraints and limited flexibility in pricing make this ZIP code less attractive for investors who are primarily interested in Section 8 vouchers.

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.