Cleveland, OH — Rental Investment Analysis
🟢GOOD— solid returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Cleveland, OH offers a 7.7% cap rate with median home prices of $145,953 and 3-bedroom rents of $1,270/month.
Cleveland offers solid returns for rental investors. With a median home price of $145,953, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,270/month, the 7.7% cap rate tells the story. Expect around +$146/month cash flow after mortgage, taxes, insurance, and reserves.
The 1% rule comes in at 0.96% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.21 is tight — you'll pass most lender minimums but with little margin for error.
Bottom line: Buy here if you want reliable monthly income. Cleveland is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
7.7%
Above average
Monthly Cash Flow
+$146
After all expenses
Price-to-Rent
8.7
Investor-friendly
DSCR
1.21
Tight
Key Metrics
- Median Home Price
- $145,953
- Average Rent (3BR)
- $1,270/mo
- Price-to-Rent Ratio
- 8.7(good)
- 1% Rule
- 0.96%(fails — need 1%+)
- Cash-on-Cash Return
- 5.8%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 3.9%(-0.4% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- -0.5% YoY
Property Tax Rate
1.53%
of assessed value (OH avg)
Median Income
$61,938
household (OH avg)
Rent-to-Income
24.6%
Affordable
Section 8 Max Rent
$1,270/mo
3BR voucher payment
OH Investor Climate
Landlord Friendly
7/10
State Income Tax
Has state tax
Property Tax
1.53% effective
Population Trend
-0.5% (3yr)
Population Movement (Tax Year 2021→2022)
Net Migration
-2,226 households
SHRINKING
Total Inflow
513,843
households moved in
Avg Income (New Residents)
$88,626
per household
Where they're coming from:
Where residents are leaving to:
Net outflow may indicate weakening demand — but can mean lower prices and higher cap rates.
Best Zip Codes in Cleveland for Investors
All Zip Codes in Cleveland
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 44127 | 16.4% | +$530 | $63,670 | $1,170/mo | 2.56 |
| 44105 | 13.6% | +$463 | $77,282 | $1,200/mo | 2.13 |
| 44108 | 13.3% | +$441 | $76,868 | $1,170/mo | 2.08 |
| 44103 | 13.0% | +$431 | $78,337 | $1,170/mo | 2.03 |
| 44104 | 12.3% | +$405 | $82,272 | $1,170/mo | 1.92 |
| 44110 | 12.2% | +$423 | $86,900 | $1,230/mo | 1.91 |
| 44115 | 8.0% | +$220 | $160,816 | $1,590/mo | 1.26 |
| 44119 | 7.7% | +$151 | $134,600 | $1,290/mo | 1.21 |
| 44102 | 7.7% | +$146 | $131,658 | $1,260/mo | 1.21 |
| 44135 | 7.0% | +$81 | $158,375 | $1,400/mo | 1.10 |
| 44114 | 7.0% | +$103 | $211,054 | $1,860/mo | 1.09 |
| 44106 | 6.9% | +$74 | $187,371 | $1,630/mo | 1.07 |
| 44109 | 6.5% | +$17 | $145,953 | $1,220/mo | 1.02 |
| 44111 | 6.4% | +$0 | $160,594 | $1,320/mo | 1.00 |
| 44113 | 5.0% | -$351 | $307,637 | $2,100/mo | 0.79 |
| 44251 | 4.0% | -$751 | $369,466 | $2,120/mo | 0.62 |
| 44287 | 3.2% | -$665 | $253,232 | $1,270/mo | 0.51 |