Cap rates 6.8–7.8% · Median price $160,000 · Median rent $1,000/mo · Population 370K
Cleveland offers some of the highest cash-on-cash returns of any US metro. Very low entry prices, a massive healthcare sector (Cleveland Clinic, University Hospitals), and strong landlord laws make it a cash flow investor's market.
Here's what the numbers look like on a typical Cleveland rental at current market rates (20% down, 7.5% rate, standard expenses):
| Metric | As-Is (Current Rents) | Stabilized (Market Rents) |
|---|---|---|
| Purchase Price | $160,000 | $160,000 |
| Down Payment (20%) | $32,000 | $32,000 |
| Monthly Rent | $900 | $1,000 |
| Monthly Mortgage | $895 | $895 |
| Monthly OpEx (est 35%) | $315 | $350 |
| Est. Monthly Cash Flow | $-310/mo | $-245/mo |
| Cap Rate | 4.4% | 4.9% |
* Estimates only. Uses 20% down, 7.5% rate, 30yr term, 35% expense ratio, 5% vacancy. Run your own numbers with the calculator below.
Best for cash flow: Focus on workforce housing in established neighborhoods with strong employer anchors. Avoid chasing the highest raw yield numbers — the 10% cap rate in a declining neighborhood often means vacancy and management headaches that destroy returns.
Best for appreciation: Target neighborhoods within 2 miles of job centers, universities, or transit that are in the early stages of gentrification. Look for the coffee shop / yoga studio signal — amenities follow renters, and renters follow amenities.
Best for STR: Check local STR regulations carefully before investing. Some {name} neighborhoods have restrictions on short-term rentals.
DSCR Loans: Most Cleveland properties qualify for DSCR financing with a 1.0+ ratio. Use our DSCR Calculator to check qualification before making an offer.