Section 8 Fair Market Rent (FMR) for ZIP 44103 - 2027

Location: Cleveland, OH | Metro: Cleveland, OH HUD Metro FMR Area

Investment Score for ZIP 44103

A+

Monthly Rent (2BR)

$1,080

Median Price (2BR)

$55,982

1% Rule

1.93%

Annual Yield

23.15%

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	$780
1 Bedroom	$890
2 Bedrooms	$1,080
3 Bedrooms	$1,380
4 Bedrooms	$1,490
5 Bedrooms	$1,728
6 Bedrooms	$1,935
7 Bedrooms	$2,090
8 Bedrooms	$2,195

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,080	$55,982	1.93%	A+
3BR	$1,380	$73,006	1.89%	A+
4BR	$1,490	$69,028	2.16%	A+
5BR	$1,728	$81,846	2.11%	A+

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,941

Median Household Income

$27,047

Housing Units

9,376

Renter Percentage

67.8%

Occupancy Rate

73.3%

Renter Occupied

4,661

To determine if you should buy in ZIP 44103 (Cleveland, OH) for Section 8, follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for ZIP 44103 in fiscal year 2024 is $900. For a property valued at $75,600, calculate if this FMR can cover the debt service. If the DSCR is less than 1, meaning the rental income does not cover the mortgage and other expenses, the answer is No. Otherwise, proceed to Step 2.

Step 2: Market Rent Comparison

The Zillow Rent Index (ZORI) for ZIP 44103 is $1,150. Compare this figure to the FMR of $900:

If market rent ($1,150) is significantly higher than the FMR ($900), proceed to Step 3.
If market rent is close to or equal to the FMR, consider that Section 8 properties might struggle to compete with market rates. The answer is It Depends.
If market rent is lower than the FMR, it suggests that Section 8 properties could be more attractive to tenants. The answer is Yes.

Step 3: Demand Assessment

In ZIP 44103, 67.8% of residents are renters. However, the Days on Market (DOM) data is not available. With high renter concentration:

If there is sufficient demand, the answer is Yes. High renter concentration indicates a strong need for housing, which is favorable for Section 8 investments.
If the lack of DOM data makes it difficult to assess how quickly properties are rented out, the answer is It Depends. This uncertainty means further investigation into local real estate trends and vacancy rates is necessary.

Note: Ensure you factor in all costs including maintenance, insurance, and property taxes when calculating DSCR. Also, verify the local vacancy rate and rental market dynamics to better understand the "It Depends" scenario.

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.