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 | $1,340 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,530 | $71,983 | 2.13% | A+ |
| 2BR | $1,850 | $181,719 | 1.02% | B |
| 3BR | $2,360 | $247,983 | 0.95% | C |
| 4BR | $2,550 | $488,951 | 0.52% | F |
| 5BR | $2,958 | $744,038 | 0.4% | F |
U.S. Census Bureau data (2024)
In Shaker Heights, Ohio, the real estate landscape for ZIP code 44122 reveals a nuanced picture of both stability and potential opportunity. The median home value stands at $365,692, indicating a robust housing market that has maintained its value. With only 0.1% of listings experiencing reductions, it's clear that sellers retain significant pricing power. This low percentage of price adjustments suggests that demand remains steady, and there is little pressure on homeowners to lower their asking prices.
The median days on market (DOM) for homes in this area is 23 days, which is relatively short. This quick turnover rate signals strong interest from buyers, further reinforcing the notion that sellers can command higher prices without extended periods of waiting for offers. Landlords and small- portfolio investors should take note of these trends, as they suggest that rental properties in Shaker Heights are likely to maintain their value over the next 12 to 24 months.
On the rental side, the Fair Market Rent (FMR) for ZIP 44122 in fiscal year 2024 is set at $1,540. In contrast, the actual market rent, measured by ZORI (Zillow Observed Rent Index), is $1,921. This gap between FMR and market rents indicates that landlords have room to increase rents without losing tenants, as the market supports higher rental rates. However, it also suggests that there could be regulatory pressures or changes in policy that might affect the ability to raise rents beyond the FMR level.
For long-term investors, the appreciation thesis in Shaker Heights hinges on the continued strength of the local economy and job market. The data does not explicitly predict future appreciation but implies that the current conditions favor maintaining property values. As long as employment remains stable and there is no significant downturn in the local economy, the likelihood of depreciation is low. Investors should consider the potential for modest appreciation, driven by the sustained demand for housing and the limited supply of properties for sale.
The setup in Shaker Heights is one where both homeowners and landlords enjoy considerable advantages due to the tight market and high demand. The median home value, coupled with the minimal need for price reductions and quick sales, points towards a favorable environment for those looking to hold onto properties for the long term. While the disparity between FMR and market rents provides immediate benefits to landlords, it also highlights the importance of staying informed about any potential changes in rent control policies or economic shifts that could impact the market.
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.