Location: Cleveland, OH | Metro: Cleveland, OH HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The ZIP code 44274 presents several challenges for landlords considering Section 8 investments. One significant issue is tenant turnover. The Fair Market Rent (FMR) for the area, set at $1140 for FY 2024, does not provide a complete picture due to the lack of available data on market rents. This discrepancy can lead to higher turnover rates if tenants find better rental options outside of Section 8.
Vacancy exposure is another concern. With no data on days on market (DOM), it's difficult to assess how quickly properties might fill. However, a high vacancy rate can be detrimental to cash flow, especially when relying on government subsidies that may have delays or changes in funding.
Deferred maintenance poses a risk as well. Without specific data on typical home values and median incomes in ZIP 44274, it's hard to gauge the financial capacity of landlords to keep up with necessary repairs and renovations. This can result in property devaluation and potential legal issues if safety standards are not met.
Despite these risks, the high renter share in ZIP 44274 stands at 29.5%. This indicates a robust demand for rental housing, which often correlates with a higher number of tenants holding Section 8 vouchers. While this demand can help fill vacancies more quickly, it also means competition among landlords for these vouchers may increase, potentially affecting profitability.
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.