Toledo, OH — Rental Investment Analysis
🟢STRONG— excellent cash flow marketData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Toledo, OH has a median cap rate of 9.7%, making it one of the top cash-flowing rental markets in the United States.
Toledo is one of the strongest cash flow markets in the data. With a median home price of $115,657, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,260/month, the 9.7% cap rate tells the story. Expect around +$272/month cash flow after mortgage, taxes, insurance, and reserves.
The market passes the 1% rule (1.16%), which is increasingly rare and signals strong rent-to-price fundamentals. DSCR of 1.52 means the property's income comfortably covers debt service — DSCR loans should be easy to qualify for here.
Bottom line: Buy here if you want reliable monthly income. Toledo 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
9.7%
Above average
Monthly Cash Flow
+$272
After all expenses
Price-to-Rent
7.2
Investor-friendly
DSCR
1.52
Passes lender test
Key Metrics
- Median Home Price
- $115,657
- Average Rent (3BR)
- $1,260/mo
- Price-to-Rent Ratio
- 7.2(good)
- 1% Rule
- 1.16%(passes)
- Cash-on-Cash Return
- 14.5%
- 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
24.4%
Affordable
Section 8 Max Rent
$1,260/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
-502 households
SHRINKING
Total Inflow
167,207
households moved in
Avg Income (New Residents)
$73,283
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 Toledo for Investors
All Zip Codes in Toledo
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 43608 | 22.3% | +$663 | $50,100 | $1,220/mo | 3.49 |
| 43610 | 16.9% | +$548 | $62,271 | $1,180/mo | 2.65 |
| 43609 | 16.3% | +$591 | $71,770 | $1,310/mo | 2.55 |
| 43605 | 16.1% | +$528 | $65,210 | $1,180/mo | 2.52 |
| 43604 | 15.2% | +$486 | $66,588 | $1,140/mo | 2.37 |
| 43607 | 13.7% | +$478 | $78,686 | $1,230/mo | 2.14 |
| 43612 | 10.0% | +$352 | $115,657 | $1,380/mo | 1.57 |
| 43620 | 9.7% | +$272 | $98,287 | $1,140/mo | 1.52 |
| 43613 | 6.5% | +$10 | $157,985 | $1,310/mo | 1.01 |
| 43611 | 6.3% | -$7 | $154,347 | $1,260/mo | 0.99 |
| 43615 | 5.9% | -$76 | $179,121 | $1,380/mo | 0.92 |
| 43606 | 4.9% | -$232 | $192,558 | $1,300/mo | 0.77 |
| 43614 | 4.5% | -$320 | $200,774 | $1,260/mo | 0.70 |
| 43623 | 4.3% | -$362 | $207,088 | $1,260/mo | 0.67 |
| 43617 | 2.6% | -$1,036 | $326,528 | $1,420/mo | 0.40 |