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 | $890 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $129,899 | 0.95% | C |
| 3BR | $1,570 | $189,681 | 0.83% | C |
| 4BR | $1,690 | $235,297 | 0.72% | D |
| 5BR | $1,960 | $262,938 | 0.75% | D |
U.S. Census Bureau data (2024)
A skeptical investor might have several concerns regarding investing in ZIP 44146 (Bedford, OH). Here are some common objections and the data to address them:
Will FMR $1150 (zip FY 2024) cover the mortgage on a $178,697 home?
The Fair Market Rent (FMR) for ZIP 44146 is set at $1150 for FY 2024. To determine if this will cover the mortgage on a home valued at $178,697, consider current mortgage rates. According to recent data, a typical mortgage rate for a 30-year fixed loan is approximately 5%. Using these rates, the monthly mortgage payment on a $178,697 home would be around $950, assuming a 20% down payment. Thus, the FMR comfortably covers the mortgage payment.
Is there enough renter demand at 42.9%?
The rental demand in ZIP 44146 is currently at 42.9%, indicating a moderate level of interest from renters. While this percentage is not exceptionally high, it does suggest a steady demand. Additionally, the median sale price of a home in 44146 was $180K in March 2026, with homes selling for a median price of $179,700, showing that the market remains active. The Redfin Compete Score for 44146 indicates that the area is very competitive, with homes selling in 34 days on average, which supports the idea that there is sufficient demand to maintain rental occupancy.
Will vouchers keep pace with $1,082 market rents?
The market rent in ZIP 44146 is currently around $1,082. Given the FMR is set at $1150, it suggests that voucher holders could potentially cover the market rent. However, it's important to note that the actual amount received through vouchers can vary based on individual circumstances and the availability of units that accept vouchers. Landlords should be aware that while vouchers generally align with market rents, there may be instances where adjustments are needed.
In summary, while there are valid concerns regarding the feasibility of covering mortgage payments and maintaining rental occupancy, the data indicates that ZIP 44146 presents a reasonable investment opportunity for landlords and small-portfolio investors. The FMR is sufficient to cover mortgage costs, and the rental demand, though not extremely high, is stable. Vouchers are likely to keep pace with market rents, but landlords should remain flexible to adapt to any changes.
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.