Updated 2026 · Based on median market data for Cleveland, OH
Cleveland sits in the Midwest with a population of 372,624 declining at -0.1% annually. The median home costs $175,000 while rents average $1,100/mo, producing an estimated cap rate of 4.57%. This is a moderate market that rewards careful deal sourcing.
Cleveland works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 4.57% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $175,000 median — around $140,000 or less. At this price point with $1,100/mo rents, your cap rate improves to roughly 6.3%. Factor in 1.63% property taxes ($2,853/yr), budget 5% of gross rent for maintenance, and underwrite to a 7.2% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,269.
Population decline (-0.1%) is the primary risk — shrinking markets can see rising vacancy and downward pressure on rents and values. The 7.2% vacancy rate is above the national average, so budget conservatively and screen tenants carefully. Property taxes at 1.63% are notably high — this is a significant drag on NOI that some investors underestimate. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Cleveland property using our cap rate calculator (pre-filled with Cleveland data). Compare Cleveland against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.