Location: Cleveland, OH | Metro: Cleveland, OH HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 44125, Garfield Heights, OH, presents a scenario where landlords can expect marginal cash flow when comparing the HUD Fair Market Rent (FMR) of $1230 to the Zillow Observed Rental Index (ZORI) of $1,429 for fiscal year 2024. This indicates that landlords who participate in the Section 8 program will see a slight shortfall in rental income compared to market rates, but it remains manageable.
To further analyze the investment potential, consider the median home value in the area, which stands at $138,963. The rent-to-price ratio calculated from these figures suggests that the rental income relative to property values is reasonable, making it a viable option for those interested in long-term investments or rental properties. This ratio supports the idea that the cost of renting is well-aligned with the value of owning a home in this region.
The market conditions also provide insight into the dynamics between renting and buying. With a median Days on Market (DOM) of 17 days and a price-cut share of just 0.2%, the real estate market in Garfield Heights is relatively stable and quick-moving. These metrics indicate a healthy demand for both rental and purchase properties, which could influence how landlords set their rental prices and manage their portfolios.
In conclusion, while voucher tenants in ZIP 44125 may not generate significant cash flow above the market average, the stability and reasonable rent-to-price ratio make this area an attractive option for investors focused on steady returns and property appreciation over time.
Data Sources: FMR data from HUD (2027). 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.