Location: Cleveland, OH | Metro: Akron, OH MSA
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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $257,609 | 0.43% | F |
| 3BR | $1,350 | $338,421 | 0.4% | F |
| 4BR | $1,480 | $389,368 | 0.38% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $950 for ZIP 44234 (Hiram, OH) in fiscal year 2024 will be sufficient to cover the mortgage on a home valued at $319,120. Based on current mortgage rates, a monthly payment on a $319,120 home would likely range between $1,200 and $1,500, depending on the interest rate and down payment. Therefore, the FMR of $950 is unlikely to cover the mortgage alone, especially if the interest rate is higher.
The investor may also doubt the renter demand at 14.5%. However, with a total population of 3,763, the number of renters could be substantial. The median household income in ZIP 44234 is $75,547, indicating that many residents can afford to pay market rates for housing. Additionally, the presence of institutions such as Hiram College likely contributes to a steady demand for rental properties.
Another concern is whether Housing Choice Vouchers will keep pace with market rents, currently at $923. While the FMR is slightly higher, it is important to note that voucher holders often face challenges finding landlords willing to accept them. Moreover, the voucher amount may not always match the FMR due to funding limitations and local market conditions. In ZIP 44234, the percentage of households receiving housing assistance is relatively low, which could mean that vouchers are not as prevalent or influential in setting rental prices.
In conclusion, while the FMR of $950 may not fully cover the mortgage on a $319,120 home, the combination of steady renter demand and median household income suggests that rental properties can still be profitable. However, the reliance on Housing Choice Vouchers should be approached cautiously, given their limited impact on rental pricing in ZIP 44234.
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.