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 | $1,180 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,180 | $126,876 | 0.93% | C |
| 2BR | $1,430 | $210,764 | 0.68% | D |
| 3BR | $1,830 | $163,031 | 1.12% | B |
| 4BR | $1,970 | $172,544 | 1.14% | B |
| 5BR | $2,285 | $350,822 | 0.65% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 44106, located in Cleveland, Ohio, within Cuyahoga County, can be explained clearly through the lens of SAFMR (Small Area Fair Market Rent) and local market rents. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1260. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent in this specific ZIP code. Local market rents, as measured by ZORI (Zillow Observed Rent Index), run higher at $1672.
A landlord participating in the Section 8 program should understand how the reimbursement works. The voucher pays a portion of the rent based on the SAFMR, which is $1260 in this case. The tenant is responsible for paying a portion of the rent themselves, typically around 30% of their income. Utility allowances are also factored into the total payment structure, but these do not increase the overall reimbursement beyond the SAFMR.
To illustrate, if a landlord sets the rent at the local market rate of $1672, the voucher would cover up to $1260 of that cost. The remaining $412 must come from the tenant's income. If the tenant cannot afford the difference, the unit may remain vacant. Therefore, landlords must carefully consider whether to accept a lower rental income or risk having an unoccupied property.
The typical reimbursement gap for a two-bedroom apartment in ZIP 44106 is $412. This is the difference between the local market rent ($1672) and the SAFMR ($1260). Landlords should weigh this gap against the benefits of guaranteed payments and reduced vacancy risks when deciding to participate in the Section 8 program.
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.