Section 8 Fair Market Rent (FMR) for ZIP 44111 - 2027

Investment Score for ZIP 44111

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	$860
1 Bedroom	$970
2 Bedrooms	$1,180
3 Bedrooms	$1,510
4 Bedrooms	$1,630
5 Bedrooms	$1,891
6 Bedrooms	$2,118
7 Bedrooms	$2,287
8 Bedrooms	$2,401

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
2BR	$1,180	$132,099	0.89%	C
3BR	$1,510	$169,022	0.89%	C
4BR	$1,630	$201,650	0.81%	C
5BR	$1,891	$227,951	0.83%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 44111 (Cleveland, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 44111 in Cleveland, Ohio, for 2026 indicate that the rent for a two-bedroom unit is set at $1180. This figure represents approximately 24.7% of the median household income of $57,252. However, it is important to understand how these FMRs compare to actual rents in the area. According to Zillow, the median price for a two-bedroom home is $126,275, which translates into a price-to-FMR ratio of 8.9x. This suggests that the actual cost of owning a two-bedroom property is significantly higher than the FMR for renting such a unit. For voucher holders, the constraints are primarily financial. The maximum rent they can pay under the Section 8 program is capped by the FMR. In the case of a two-bedroom unit, this means a voucher holder would be limited to paying up to $1180 per month. Given the occupancy rate of 93.1%, there is likely a high demand for rental units, which could make it challenging for voucher holders to find affordable housing within their budget. Additionally, landlords have the discretion to accept or reject vouchers, which adds another layer of complexity for renters. #### Affordability & Renter Profile ZIP code 44111 has a significant portion of its population renting, with 42.6% of households being renters. The median household income of $57,252 suggests that many residents are middle-income earners. With the FMR for a two-bedroom unit at $1180, which is 24.7% of the median income, the affordability of housing is relatively balanced but still presents challenges for lower-income individuals. Given the occupancy rate of 93.1%, the rental market appears to be quite tight, indicating strong demand for rental properties. This tightness could lead to upward pressure on rents, making it difficult for some renters to find affordable options. The high percentage of renters also implies that there is a substantial need for rental units, particularly those that are affordable for low- and middle-income families. #### Investor Angle From an investor perspective, the key question is whether the rental market in ZIP code 44111 is cash-flow positive at the FMR levels. The FMR for a two-bedroom unit is $1180, which is a reasonable starting point for assessing potential returns. However, the price-to-FMR ratio of 8.9x indicates that the purchase price of a two-bedroom property is much higher than the rental value, suggesting that the primary value proposition for investors might be capital appreciation rather than immediate cash flow. To determine the investment grade, we must consider several factors including the demand for rental units, the occupancy rate, and the overall economic health of the area. With an occupancy rate of 93.1%, there is a strong likelihood that rental units will remain occupied, reducing the risk of vacancy. Additionally, the high percentage of renters and the relatively modest median household income suggest that there is a consistent demand for affordable housing, which could support steady rental income. However, the high price-to-FMR ratio raises concerns about the immediate profitability of rental investments. Investors should carefully evaluate the costs associated with purchasing and maintaining a property, as well as the potential for rental increases over time. While the market dynamics suggest strong demand, the initial investment required to purchase a property at the current prices may not yield immediate positive cash flow. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Given the high percentage of renters and the tight market, investors should focus on acquiring properties that fall within the FMR range. For example, a one-bedroom unit with a rent of $980 or a two-bedroom unit with a rent of $1180 would be more likely to attract stable tenants who are eligible for Section 8 vouchers. This strategy aligns with the needs of the local population and ensures that the property remains competitive in the rental market. 2. **Consider Capital Appreciation**: Since the price-to-FMR ratio is high, investors should consider the potential for capital appreciation. If the property is purchased at a price that reflects the current market conditions, it could appreciate in value over time. This would provide a secondary benefit to investors beyond rental income. For instance, if a two-bedroom property is purchased for $126,275, the investor should expect that the value of the property could increase, even if the immediate rental income is modest. 3. **Engage with Local Landlords**: To better understand the local rental market and the acceptance of Section 8 vouchers, investors should engage with existing landlords in the area. This can help identify any trends or patterns in voucher acceptance and provide insights into the types of properties that are most in demand. By networking with local landlords, investors can gain valuable information that could inform their acquisition and management strategies. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 44111 is to **Hold**. While the rental market is tight and there is a strong demand for affordable housing, the high price-to-FMR ratio suggests that immediate cash flow may be limited. Instead, investors should consider the long-term potential for capital appreciation and focus on acquiring properties that are priced within the FMR guidelines. This approach balances the immediate financial constraints with the broader economic opportunities in the area.

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.