Convert 2-bed to 3-bed in Euclid for CMHA / Voucher Tenants?

Question

Hi - I would appreciate any advice or insight. I have 950 square foot two-bed apartments in Euclid OH. I have always rented to market tenants and am now considering renting via CMHA. My living rooms are 12’ X 22’, so I’m considering dividing a few to make 12’ X 9’ 3rd bedrooms, leaving living rooms of about 12’ X 13’. The apartments have small dinettes off the kitchen that can fit a 4-person table. Does this plan make sense for CMHA / voucher / section 8, or is 12’ X 13’ too small for a LR? Thanks for your advice!

Elealeh Fulmaran · Answer

Test it on paper before swinging a hammer. For CMHA, bedroom count can help voucher size, but only if the new room is legal: check minimum bedroom size, egress, heat, and closet, and pull permits. A 12x13 living room with a separate dinette can work, but only if traffic flow isn’t cramped; small, choppy layouts turn off families. I’d first ask CMHA locally how they’ll view the change, mock up furniture in both layouts, and only convert units where the rent bump outweighs cost and potential market shrink. If in doubt, leave the LR open and tighten the third bed elsewhere.

Arman Ahmed · Answer

@Karl Kauper

That’s a solid question, Karl, and one a lot of Cleveland investors run into. CMHA tends to prioritize bedroom count since higher bedrooms can mean higher voucher limits, but you’ll also want to make sure the space still feels livable and flows well. A 12’ x 13’ living room can work fine, especially if there’s a separate dining area. Before converting, I’d confirm CMHA’s current payment standards and inspection criteria—they can vary slightly by neighborhood. I’ve seen investors in Euclid get great returns this way when done thoughtfully.