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 | $1,330 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $249,918 | 0.74% | D |
| 3BR | $2,350 | $351,931 | 0.67% | D |
| 4BR | $2,540 | $540,079 | 0.47% | F |
| 5BR | $2,946 | $787,071 | 0.37% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 44139, which encompasses Solon, OH, within the Cleveland, OH HUD Metro FMR Area, is set at $1580 for fiscal year 2024. This figure represents the maximum amount that landlords can charge for Section 8 vouchers in this area. In contrast, the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $2,595. This significant gap between the HUD FMR and the actual market rent means that landlords accepting Section 8 vouchers will experience negative cash flow unless they have premium units commanding higher rents.
To further analyze the investment potential, consider the median home value in ZIP 44139, which is $453,585. Using this data point, we can calculate a rent-to-price ratio of approximately 0.0035 (calculated as $1580 annual rent divided by $453,585 home value). This low ratio suggests that rental income alone does not provide a strong financial incentive for purchasing property solely for rental purposes. However, it does highlight the disparity between the cost of owning a home and the rental income generated by the HUD FMR.
The rental market's dynamics also play a crucial role in investment decisions. The median Days on Market (DOM) for rentals in this area is 19 days, indicating a relatively quick turnover and high demand for rental properties. Additionally, the price-cut share stands at just 0.2%, suggesting that landlords do not often need to lower their asking prices to attract tenants. These factors contribute to a stable rental market environment, making it less risky for investors to hold onto properties long-term.
In conclusion, while cash flow from Section 8 vouchers may be limited due to the substantial difference between the HUD FMR and market rent, the strong demand for rental properties and the minimal need for price reductions indicate that stability is the strongest angle for investors in ZIP 44139. This stability provides a reliable foundation for long-term investment strategies, ensuring consistent occupancy and predictable income streams despite the challenges posed by the HUD FMR.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.