Section 8 Fair Market Rent (FMR) for ZIP 44107 - 2027

Investment Score for ZIP 44107

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	$990
1 Bedroom	$1,130
2 Bedrooms	$1,370
3 Bedrooms	$1,750
4 Bedrooms	$1,890
5 Bedrooms	$2,192
6 Bedrooms	$2,455
7 Bedrooms	$2,651
8 Bedrooms	$2,784

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	$1,130	$98,884	1.14%	B
2BR	$1,370	$219,957	0.62%	D
3BR	$1,750	$302,490	0.58%	F
4BR	$1,890	$379,952	0.5%	F
5BR	$2,192	$522,948	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 44107 (Lakewood, OH) #### Section 8 Voucher Dynamics In ZIP code 44107, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1360 per month for the year 2026. This figure represents 23.7% of the median household income in Lakewood, which stands at $68,970. However, it is important to note that the actual rental prices can be significantly higher. According to Zillow, the median price for a two-bedroom home in this area is $204,186, translating to a monthly rent of approximately $1701 based on a typical mortgage payment (assuming a 4.5% interest rate and a 30-year term). The price-to-FMR ratio is 12.5x, indicating that actual rents are much higher than the FMR. For voucher holders, this means that finding housing within the FMR limit can be challenging, as many landlords may prefer higher rents due to the potential for better returns. #### Affordability & Renter Profile The population of Lakewood is 50,018, with a high percentage of renters at 55.6%. Given the occupancy rate of 92.2%, it suggests that the rental market is relatively tight, with most units occupied. The median household income of $68,970 indicates that the majority of residents have moderate incomes. With 55.6% of the population renting, there is a significant demand for affordable housing options. However, the high price-to-FMR ratio implies that affordability is a major issue for many renters, especially those relying on Section 8 vouchers. The median rent for a two-bedroom unit being $1701 is well above the FMR, making it difficult for voucher holders to find suitable accommodation unless they can negotiate with landlords who accept lower rents. #### Investor Angle From an investor perspective, the ZIP code 44107 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1360, while the actual median rent is $1701. This difference suggests that there could be a potential for cash flow if investors can secure properties below the actual median rent but still within the FMR range. However, the tight rental market and high demand for housing mean that competition for properties will be fierce. Additionally, the high price-to-FMR ratio indicates that the area is overpriced relative to the FMR, which might make it less attractive for investors focusing solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should focus on acquiring properties where the rent is closer to the FMR. For example, a two-bedroom apartment rented at $1360 would be ideal for Section 8 voucher holders. This approach ensures that the property remains affordable and increases the likelihood of attracting tenants who rely on vouchers. 2. **Negotiate with Landlords**: Given the high price-to-FMR ratio, investors might need to engage in negotiations with existing landlords to convince them to accept lower rents. This could involve offering incentives such as property management services or improvements that increase the value of the property. 3. **Consider Multi-Family Units**: Since the FMR for larger units (3BR and 4BR) is also significantly lower than the actual median rent, investing in multi-family units could provide a more balanced approach. A three-bedroom unit with an FMR of $1750 could potentially attract families who might otherwise struggle to find affordable housing. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 44107 is to **Hold**. While there are opportunities to acquire properties that align with the FMR, the high actual rents and tight market conditions suggest that finding such properties will be challenging. Additionally, the high price-to-FMR ratio indicates that the area is overpriced relative to the FMR, which could lead to lower returns compared to other areas. Investors should carefully evaluate the local rental market dynamics and consider alternative strategies to ensure profitability while providing affordable housing options for voucher holders.

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.