Cap Rate in Cleveland, OH

2026 Market Overview for Real Estate Investors

Last updated: March 2026 • Sources: Census ACS, Zillow, Redfin, county assessor

Avg Cap Rate

9.8%

#2 of 50 markets

Median Home Price

$105,000

Purchase price

Median Monthly Rent

$1,100

$13,200/yr gross

Rent-to-Price Ratio

1.05%

Strong (1% rule range)

Cap Rate Rating

Very Good

Above average. Make sure the higher return is not masking higher risk or deferred maintenance.

Market Snapshot

Population	367,991
5-Year Population Growth	-2.1%
Median Household Income	$33,500
Vacancy Rate	9.8%
Property Tax Rate	2.19%($2,300/yr)

Investor Takeaway

Cleveland remains one of the top cash-flow markets in the US. The Tremont and Ohio City neighborhoods have seen strong rent growth while maintaining investor-friendly price points.

Top Neighborhoods for Investors

Where to focus your search in Cleveland, OH:

Tremont

Appreciation

Walkable arts district south of downtown. Strong rent growth and institutional investor activity confirm the market. Higher entry prices but lower vacancy risk.

Ohio City

House Hacking

West Side Market anchor draws young professionals. Duplexes and multifamily properties support house hacking with strong rental demand.

Lakewood

Cash Flow

Inner-ring suburb with excellent schools and walkability. Strong tenant quality with lower turnover. Cap rates lower than city proper but more stable.

Detroit Shoreway

BRRRR

Emerging neighborhood between Ohio City and Edgewater Park. Lower acquisition costs with active renovation creating BRRRR opportunities.

Quick Math

Estimated annual numbers for a median-priced property in Cleveland, OH before financing:

Annual Gross Rent$13,200

Less Vacancy (9.8%)($1,294)

Less Property Tax (2.19%)($2,300)

Less Est. Insurance + Maintenance($2,100)

Estimated NOI$7,507

Implied Cap Rate7.1%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.