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Toledo vs Cleveland for Rental Property Investing

Side-by-side comparison of Toledo, OH and Cleveland, OH — cap rates, rent, prices, and investment metrics.

Cleveland wins 4–3 across key metrics
Toledo leads on cash flow (4.33% vs 4.02% cap rate) · Cleveland leads on population growth
Metric
Toledo, OH
Cleveland, OH
Est. Cap Rate
4.33%
4.02%
Median Home Price
$190,000
$240,000
Median Monthly Rent
$1,160
$1,390
1% Rule
0.61%
0.58%
GRM
13.6x
14.4x
Price / Income
4.9x
6.8x
Property Tax Rate
1.65%
1.63%
Vacancy Rate
7.5%
7.2%
Population Growth
-0.3% / yr
-0.1% / yr
Annual Appreciation
1.8%
2%
Population
268,508
372,624
Median Income
$38,600
$35,200

Toledo vs Cleveland: Which Is Better for Investors?

Cash flow: Toledo has the edge with an estimated cap rate of 4.33% compared to Cleveland's 4.02%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $190,000 in Toledo vs $240,000 in Cleveland, while rents come in at $1,160/mo and $1,390/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Cleveland is growing faster at -0.1% annually, while Toledo is losing population. Cleveland leads on home value appreciation at 2% per year.

Costs & risk: Property taxes are 1.65% in Toledo vs 1.63% in Cleveland. Vacancy rates of 7.5% and 7.2% are both elevated, warranting conservative cash flow projections.

Entry point: Toledo offers a lower entry at $190K vs Cleveland's $240K — a difference of $50K. With a 20% down payment, that's $38K vs $48K. Toledo combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Cleveland edges out Toledo on most key metrics. While cap rates are moderate at 4.02%, Cleveland's overall profile is stronger. Use our free calculators to model specific deals in Toledo or Cleveland.

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Toledo, OH
4.33% cap rate · $190,000 median · $1,160/mo
Full analysis →
Cleveland, OH
4.02% cap rate · $240,000 median · $1,390/mo
Full analysis →

Frequently Asked Questions

Is Toledo or Cleveland better for rental investing?
Cleveland wins 4–3 across our 7 key metrics. Cleveland's 4.02% cap rate and $240K median price give it the edge overall.
What is the cap rate difference between Toledo and Cleveland?
Toledo has a 4.33% cap rate vs Cleveland's 4.02% — a difference of 0.31 percentage points. This is a relatively small difference — other factors like growth, taxes, and local market conditions may matter more. For context, the national average is 3.81%.
Which city has lower property taxes?
Cleveland has lower property taxes at 1.63% vs 1.65%. On a $215K property, that's a difference of approximately $777/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Cleveland is growing at -0.1% annually vs Toledo's -0.3%. Both cities have slow growth — focus on the strongest neighborhoods. Cleveland's appreciation rate of 2% also leads on home value growth.

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