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 | $1,040 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,190 | $114,280 | 1.04% | B |
| 2BR | $1,440 | $184,853 | 0.78% | D |
| 3BR | $1,840 | $279,809 | 0.66% | D |
| 4BR | $1,980 | $435,980 | 0.45% | F |
| 5BR | $2,297 | $603,185 | 0.38% | F |
U.S. Census Bureau data (2024)
Willoughby, OH, located in ZIP code 44094, is a suburban community with a total population of 36,873. Approximately one-third of the residents are renters, indicating a significant demand for rental properties. The median household income stands at $78,772, suggesting a middle-class community capable of supporting various housing options. The median home value in the area is $284,648, which reflects the overall stability and desirability of the local real estate market.
The economic landscape for landlords and small-portfolio investors is favorable, particularly when considering the Federal Market Rent (FMR) and the Zillow Observed Rental Index (ZORI). For fiscal year 2024, the FMR for ZIP 44094 is set at $1,320, while the market rent, as measured by ZORI, is currently at $1,261. This indicates that Section 8 vouchers can provide a slightly higher rental rate compared to the average market rate, making it an attractive option for hands-off operators who seek stable cash flows without the need for extensive property management.
However, the difference between the FMR and the ZORI also suggests opportunities for hands-on investors looking to add value to their properties. By improving the quality and amenities of the rental units, these investors could potentially command rents closer to the FMR, thereby increasing their revenue above the average market rate. This strategy would be particularly effective in areas where the median income supports higher rental rates, but the median home value indicates room for improvement without pricing out potential tenants.
In conclusion, ZIP 44094 in Willoughby, OH, offers a balanced environment for both hands-off and hands-on Section 8 investors. The slight premium offered by the FMR over the ZORI makes it suitable for those seeking steady returns, while the potential to increase rents through property improvements appeals to value-add buyers. The combination of a substantial rental market and a median income that supports higher rents provides a solid foundation for successful investment strategies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.