Section 8 Fair Market Rent (FMR) for ZIP 44118 - 2027

Investment Score for ZIP 44118

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	$1,100
1 Bedroom	$1,250
2 Bedrooms	$1,520
3 Bedrooms	$1,940
4 Bedrooms	$2,090
5 Bedrooms	$2,424
6 Bedrooms	$2,715
7 Bedrooms	$2,932
8 Bedrooms	$3,079

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	$1,250	$62,640	2%	A+
2BR	$1,520	$159,622	0.95%	C
3BR	$1,940	$232,820	0.83%	C
4BR	$2,090	$288,577	0.72%	D
5BR	$2,424	$372,796	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 44118 (University Heights, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 44118 in 2026 is set at $1490 for a two-bedroom unit, which represents 23.1% of the median household income in the area. This FMR is designed to reflect the average rent for a modest apartment in good condition. However, the actual rental market in University Heights is significantly higher, with a Zillow median price for a two-bedroom unit at $147,426. This translates to a price-to-FMR ratio of 8.2x, indicating that the actual rental costs are much higher than the FMR. For voucher holders, this means that they face significant constraints. The maximum amount a voucher holder can pay towards rent is typically capped at 30% of their adjusted monthly income. Given the median household income of $77,555, this translates to a maximum allowable rent payment of approximately $1939 per month for a two-bedroom unit. However, since the FMR is only $1490, landlords who want to charge closer to the actual market rate may find it difficult to accept Section 8 vouchers unless they can negotiate a higher subsidy from the government. #### Affordability & Renter Profile University Heights has a population of 40,715, with 38.8% of residents being renters. This indicates a substantial demand for rental housing in the area. The occupancy rate stands at 90.3%, suggesting that the rental market is relatively tight. With a high percentage of renters and a near-full occupancy rate, there is likely strong competition for available units, especially those that are affordable. Given the median household income of $77,555, the majority of residents have a moderate to upper-middle-class income level. However, the 38.8% of renters might include individuals and families with lower incomes who rely on assistance programs like Section 8. These renters would be particularly sensitive to the high cost of living and the disparity between FMR and actual market rents. #### Investor Angle From an investor perspective, the ZIP code 44118 presents a challenging but potentially lucrative opportunity. The FMR for a two-bedroom unit is $1490, while the actual median price is $147,426. This suggests that properties priced at or near the FMR could generate positive cash flow, assuming typical operating expenses and mortgage payments. To determine the investment grade, we need to consider the potential for vacancy and the overall demand for rental housing. Given the 90.3% occupancy rate and the high proportion of renters, the risk of vacancy is relatively low. However, the challenge lies in finding properties that are both affordable and attractive to tenants, including those using Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring two-bedroom units priced at or below the FMR of $1490. This will ensure that these units are attractive to Section 8 voucher holders and other low-income renters. 2. **Negotiate Higher Subsidies**: Landlords who wish to charge closer to the actual market rate should consider negotiating with local housing authorities to receive higher subsidies for Section 8 voucher holders. This could help bridge the gap between the FMR and the actual rental rates. 3. **Consider Property Upgrades**: Since the FMR is significantly lower than the actual market rate, property upgrades can make units more attractive to higher-paying tenants. However, this strategy should be balanced against the need to remain affordable for Section 8 voucher holders. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 44118 is to **Hold**. While there is a significant gap between the FMR and actual market rents, the tight rental market and high occupancy rate suggest that demand for affordable housing remains strong. However, investors should carefully evaluate the potential for positive cash flow and consider strategies to attract both voucher holders and other low-income renters. The key is to balance affordability with the need to generate sufficient returns to cover operating expenses and mortgage payments.

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.