Location: Cleveland, OH | Metro: Cleveland, OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The potential pitfalls for Section 8 investments in ZIP 44143, Highland Heights, OH, are significant. Tenant turnover is a primary concern, as the market rent stands at $1,824 while the Fair Market Rent (FMR) for FY 2024 is only $1,080. This disparity can lead to frequent tenant changes, which increases administrative costs and reduces revenue stability. Vacancy exposure is another issue, with an average Days on Market (DOM) of 22 days indicating a relatively quick leasing process but also highlighting the risk of prolonged vacancies if the property is not appealing to tenants. Additionally, the typical home value of $301,977 contrasts sharply with the median income of $81,268, suggesting that many residents may struggle to afford necessary maintenance and repairs, thereby increasing the likelihood of deferred maintenance issues.
Despite these challenges, there are several factors that mitigate the risks. The renter share in Highland Heights is 23.8%, which is notably high. High renter density typically translates into higher demand for rental properties, including those that accept Section 8 vouchers. This increased demand can help stabilize occupancy rates and reduce the risk of extended vacancies. Furthermore, the presence of a large number of renters often indicates a diverse and dynamic community, which can be advantageous for landlords looking to maintain a steady stream of tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.