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 | $730 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $67,679 | 1.48% | A |
| 3BR | $1,280 | $82,180 | 1.56% | A+ |
| 4BR | $1,380 | $85,401 | 1.62% | A+ |
U.S. Census Bureau data (2024)
The ZIP code 44104, located in Cleveland, OH, is an ideal candidate for inclusion in a Section 8 portfolio strategy, particularly as a cash-flow anchor. This classification is based on the significant spread between the Fair Market Rent (FMR) set by HUD for the Cleveland, OH HUD Metro FMR Area for fiscal year 2024, which is $900, and the market rent of $1,178. Additionally, the median home value in this area is $78,612, indicating that it is a relatively affordable neighborhood.
The primary reason for considering ZIP 44104 as a cash-flow anchor is the substantial gap between the FMR and the market rent. Landlords who participate in the Section 8 program can expect to receive a fixed rental amount of $900 per unit, which is lower than the average market rent but still provides a reliable source of income. Given the lower median home value, the cost of acquiring properties in this area is also relatively low, making it easier to achieve positive cash flow.
Moreover, the ZIP code's characteristics support its role as a cash-flow anchor. The price-cut share is only 0.2%, suggesting that rental prices are generally stable and unlikely to drop significantly. The day DOM (days on market) is listed as N/A, which could imply that rentals in this area are typically filled quickly, reducing vacancy rates and increasing the predictability of cash flow.
The high renter share of 70.6% further solidifies the case for ZIP 44104 as a cash-flow anchor. With such a large percentage of residents renting their homes, there is a consistent demand for rental properties. Additionally, the median income of $24,111 aligns well with the income limits for Section 8 participants, ensuring a steady stream of qualified tenants.
In summary, ZIP 44104 serves as a strong cash-flow anchor within a Section 8 portfolio due to the favorable spread between FMR and market rents, stable rental prices, quick occupancy rates, and a high concentration of renters with incomes matching the program's eligibility criteria. These factors contribute to a predictable and reliable income stream for landlords and small-portfolio investors.
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.