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 | $1,080 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $270,924 | 0.55% | F |
| 3BR | $1,900 | $321,971 | 0.59% | F |
| 4BR | $2,050 | $417,598 | 0.49% | F |
| 5BR | $2,378 | $481,924 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 44136, located in Strongsville, OH, within the Cleveland, OH HUD Metro FMR area, is an ideal candidate for inclusion in a Section 8 portfolio strategy as a diversifier. The median home value in this area stands at $353,774, indicating a stable housing market that can accommodate various investment strategies. In terms of rental market dynamics, the ZIP code has a renter share of 27.5%, which aligns well with the broader trend of increasing rental demand across the United States.
A key factor supporting the diversification role of ZIP 44136 is its median income of $94,648. This figure suggests that residents have a strong financial foundation, which reduces the risk of default and ensures a steady stream of rental income. Additionally, the price-cut share of 0.2% and the median days on market (DOM) of 14 days indicate a competitive yet efficient real estate market, where properties are sold quickly without significant price reductions. This efficiency can benefit investors who are looking to turn over their properties or adjust their portfolios in response to market conditions.
When considering the financial implications for landlords and small-portfolio investors, the spread between the Fair Market Rent (FMR) and the market rent provides valuable insights. For fiscal year 2024, the FMR for ZIP 44136 is set at $1270, while the market rent is $1,294. This slight difference of just $24 per month means that properties in this ZIP code are closely aligned with the government's rental assistance programs, making them attractive to tenants who qualify for Section 8 vouchers. As a result, landlords can expect a consistent demand for their units from both subsidized and non-subsidized renters, thereby reducing vacancy rates and ensuring steady cash flow.
In conclusion, ZIP 44136 serves as a diversifier in a Section 8 portfolio strategy due to its balanced mix of stable home values, a substantial renter share, and a median income level that supports reliable tenant payments. The market conditions also suggest that properties will be sold quickly and efficiently, providing landlords and investors with flexibility and security in their investment decisions.
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.