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 | $880 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,000 | $71,122 | 1.41% | A |
| 2BR | $1,210 | $91,648 | 1.32% | A |
| 3BR | $1,550 | $113,317 | 1.37% | A |
| 4BR | $1,670 | $192,262 | 0.87% | C |
| 5BR | $1,937 | $483,437 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 44120, which encompasses Shaker Heights, OH, within Cuyahoga County and the Cleveland, OH HUD Metro FMR Area, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $1050 per month, while the market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1194. This comparison suggests that voucher tenants will typically cashflow marginally, with landlords receiving slightly less than the market rent but still maintaining a positive cash flow position.
To further understand the dynamics of this market, consider the median home value of $132,975. By dividing the HUD FMR by the median home value, we derive a rent-to-price ratio that provides insight into the relative cost of renting versus buying. In this case, the annualized rent of $12,600 ($1050 x 12 months) divided by the median home value yields a ratio of approximately 9.47%. This ratio indicates that rental income is relatively low compared to home values, suggesting that the buy market might be more attractive to investors looking for long-term appreciation.
The rental market's speed and efficiency are reflected in the 20-day median Days on Market (DOM) and a price-cut share of 0.2%, indicating a robust demand for rental properties. These figures imply that landlords can expect quick turnover and minimal need to reduce rents to attract tenants, thus maintaining steady cash flows.
In conclusion, while voucher tenants will cashflow marginally at the HUD FMR, the strong demand for rentals and the potential for home appreciation make stability the strongest investor angle in ZIP 44120. Landlords can anticipate a reliable stream of income with limited risk, making this area an attractive option for those seeking consistent returns.
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.