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 | $1,120 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $298,284 | 0.52% | F |
| 3BR | $1,980 | $335,204 | 0.59% | F |
| 4BR | $2,140 | $489,767 | 0.44% | F |
| 5BR | $2,482 | $584,041 | 0.42% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Strongsville, OH (ZIP 44149) might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these objections with the available data.
Objection 1: Will FMR $1450 (zip FY 2024) cover the mortgage on a $382,201 home?
The Fair Market Rent (FMR) for ZIP 44149 is set at $1450 per month for FY 2024. To determine if this will sufficiently cover the mortgage on a $382,201 home, we need to consider the prevailing interest rates and typical loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 6%, the monthly payment would be approximately $2,272. This means that the FMR of $1450 falls short by about $822 per month. Clearly, the FMR alone does not cover the mortgage payment on a property of this value. Landlords would need to supplement the difference from other sources or consider lower-priced homes.
Objection 2: Is there enough renter demand at 5.8%?
The rental vacancy rate in ZIP 44149 stands at 5.8%. While this percentage is relatively low, indicating some level of demand, it also suggests that competition among landlords could be significant. A 5.8% vacancy rate means that roughly one out of every 17 rental units is vacant, which could pose challenges in maintaining consistent occupancy. However, the presence of Section 8 tenants can stabilize the rental market, as these renters typically have reliable income streams due to government assistance. The data does not provide a complete picture of tenant demand but indicates that landlords should expect to work harder to fill vacancies compared to areas with higher vacancy rates.
Objection 3: Will vouchers keep pace with $1,343 market rents?
The average market rent in ZIP 44149 is $1,343 per month. Given that the FMR for Section 8 is $1450, it appears that vouchers will indeed cover the majority of market rents. This leaves a small margin for landlords, but it ensures that they won't face significant shortfalls in rent payments. It's important to note that voucher amounts can adjust annually based on changes in the FMR, so landlords should anticipate potential adjustments in future years. However, the current data shows that the voucher system is designed to meet or slightly exceed the average market rent, providing a reasonable level of financial security.
In conclusion, while the FMR of $1450 does not fully cover the mortgage on a $382,201 home, it does align well with the average market rent of $1,343. The 5.8% rental vacancy rate implies a competitive market for rentals, requiring landlords to manage their properties effectively to maintain occupancy. Investing in Section 8 properties in ZIP 44149 can offer stability, though it comes with the necessity to balance against higher mortgage costs.
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.