Section 8 Fair Market Rent (FMR) for ZIP 44130 - 2027

Investment Score for ZIP 44130

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	$1,000
1 Bedroom	$1,140
2 Bedrooms	$1,380
3 Bedrooms	$1,760
4 Bedrooms	$1,900
5 Bedrooms	$2,204
6 Bedrooms	$2,468
7 Bedrooms	$2,665
8 Bedrooms	$2,798

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	$1,380	$173,823	0.79%	D
3BR	$1,760	$239,844	0.73%	D
4BR	$1,900	$306,812	0.62%	D
5BR	$2,204	$335,207	0.66%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 44130 (Parma Heights, OH) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 44130 in 2026 is set at $1380 for a two-bedroom unit, which represents 23.8% of the median household income of $69,655. However, the actual rental market in Parma Heights appears to be significantly higher, with a Zillow median price for a two-bedroom unit at $166,062. This suggests that the price-to-FMR ratio is approximately 10.0x, meaning that actual rents are roughly ten times the FMR. For voucher holders, this means that finding affordable housing within the FMR guidelines is challenging. The typical rent for a two-bedroom unit would likely exceed the $1380 limit by a substantial margin, creating significant constraints for those relying on Section 8 vouchers. #### Affordability & Renter Profile With a population of 49,679 and a renter percentage of 36.8%, there are approximately 18,285 renters in Parma Heights. Given the high occupancy rate of 96.2%, it indicates that the rental market is quite tight, with limited availability of units. The median household income of $69,655 suggests that many residents have middle-class incomes, but the high price-to-FMR ratio implies that the rental market is not particularly affordable relative to income levels. Therefore, the typical renter in this area might struggle to find affordable housing without financial assistance like Section 8 vouchers. The market is likely undersupplied, making it difficult for renters to find units that fit their budget. #### Investor Angle From an investor perspective, the ZIP code 44130 offers potential opportunities, but with caveats. The Zillow median price for a two-bedroom unit is $166,062, while the FMR is $1380. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical rental rates and the cost of acquisition. If an investor purchases a two-bedroom unit at the Zillow median price, they would need to achieve a rental yield that covers the mortgage, property taxes, insurance, maintenance, and other costs. Given the high price-to-FMR ratio, it is unlikely that an investor could generate a positive cash flow solely based on FMR rents unless they can acquire properties at a significant discount or the market rental rates drop substantially. The investment grade for this ZIP code is moderate due to the tight rental market and the high cost of acquiring properties. While the demand for rentals is strong, the challenge lies in finding properties that can be rented out at FMR rates and still provide a reasonable return on investment. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments, where the FMR is $1140. These units are more likely to align with the actual rental market and provide better cash flow opportunities. Investors should aim to purchase one-bedroom units below the Zillow median price to ensure profitability. 2. **Consider Property Upgrades**: Investors who acquire properties in Parma Heights should consider making upgrades that can justify slightly higher rents while still remaining within the FMR guidelines. For example, adding modern appliances, improving insulation, or enhancing the overall aesthetic appeal of the property can make it more attractive to tenants and potentially command a premium within the FMR range. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 44130 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to find properties that can be rented out at FMR rates and still provide a positive cash flow. While the demand for rentals is strong, the cost of acquiring properties is prohibitive, and the constraints imposed by FMR limits make it challenging to operate profitably in this market. Investors looking to enter the Parma Heights market should carefully evaluate the feasibility of achieving their financial goals given the current market conditions and FMR guidelines.

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.