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 | $930 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $125,769 | 1.02% | B |
| 3BR | $1,640 | $168,901 | 0.97% | C |
| 4BR | $1,760 | $184,812 | 0.95% | C |
| 5BR | $2,042 | $205,805 | 0.99% | C |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 44135 in Cleveland, Ohio, for fiscal year 2024 is set at $1080. This figure represents the payment standard for Section 8 vouchers, meaning that tenants with vouchers will be able to pay up to this amount towards rent. It's important to note that this is not the actual rent you'll charge; it's the maximum subsidy the government will provide.
In comparison, the local Zillow Observed Rental Index (ZORI) for the same area is currently at $1,445. This indicates that market rents in your area exceed the Section 8 payment standard, which could mean lower profits if you rely solely on the voucher program. However, the demand for rental properties remains strong, with 39.8% of residents being renters. This high percentage suggests a steady need for affordable housing options.
When considering the acquisition cost of a property, the median home value in ZIP 44135 is around $155,060. While this can be a significant investment, the demand for rentals and the potential for long-term tenancy can make it worthwhile. The key here is to ensure that the property meets the necessary requirements for Section 8 participation, as failing to do so could result in losing out on rental income.
Before proceeding with your first Section 8 rental, you must verify that the property complies with HUD's Housing Quality Standards (HQS). These standards cover safety, health, and habitability issues and ensure that the property is fit for habitation. If the property does not meet these standards, you will not be eligible for the program, and any repairs or improvements needed to meet HQS can affect your overall costs and profitability.
In summary, the FMR of $1080 sets the limit for government subsidies, while the local ZORI of $1,445 reflects the higher market rents. With 39.8% of residents renting, there is a solid demand for affordable housing. At an acquisition cost of about $155,060, the initial investment can be substantial but is offset by the potential for stable tenancy. Ensure your property meets HUD's HQS to avoid disqualification and unnecessary expenses.
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.