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 | $1,260 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,230 | $347,036 | 0.64% | D |
| 4BR | $2,380 | $440,037 | 0.54% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 44251 provides insight into potential rental income scenarios for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $1640 per month for FY 2024, the annualized rent would be $19,680. Given the median home value of $365,348 in this area, the implied gross yield for a Section 8 tenant would be approximately 5.4%. This calculation assumes that the property's value aligns with the typical home values in the area.
In contrast, the market rent figure is listed as N/A, indicating that there might not be sufficient data to provide an accurate market rent comparison. However, if we hypothetically assume that the market rent could be higher than the FMR, the gross yield would naturally increase, making the investment more attractive on paper. But without a specific market rent figure, it’s challenging to make a direct comparison.
Given the 11.8% renter density in ZIP 44251, it’s important to note that the majority of homeowners in this area likely own their homes rather than renting them out. The N/A-day DOM (Days on Market) suggests that properties are either selling quickly or that there isn’t enough transactional data to provide a meaningful average. This lack of data can impact the reliability of market rent estimates, further emphasizing the importance of using the FMR for Section 8 as a solid benchmark.
The 5.4% gross yield from Section 8 tenants is a conservative estimate compared to what market rents might offer. However, the stability and predictability of Section 8 rents can outweigh the benefits of a potentially higher market rent in terms of long-term investment security. Landlords should weigh these factors carefully when considering whether to participate in the Section 8 program in ZIP 44251.
For investors looking to maximize returns, the hypothetical scenario of achieving a higher market rent could result in a better gross yield. Yet, the reality of the situation must also consider the lower demand for rentals and the uncertainty around market rent due to the limited data available. Therefore, while a higher market rent would imply a better gross yield, the Section 8 scenario offers a safer, more predictable income stream, especially given the characteristics of the ZIP code.
To summarize, the Section 8 cap-rate for ZIP 44251, based on the $1640 monthly FMR for a two-bedroom unit, implies a gross yield of about 5.4%. This figure is derived from the median home value and the annualized rent. While a higher market rent could improve the gross yield, the current data supports the Section 8 scenario as the most reliable option for landlords and small-portfolio investors in this area.
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.