Cleveland Rents Up 5.95% in May 2025 – What Investors Need to Know

Rents in Cleveland surged by 5.95% year-over-year in May 2025, according to the Waller, Weeks & Johnson Rental Index. That’s strong growth, outpacing national averages and making Cleveland a standout for rental property investors.

I’ve purchased over 120+ rental properties in the U.S., and Cleveland has been one of my best performing markets. That said, owning rental properties in Cleveland can be challenging. Let’s take a look at the latest rental market data for Cleveland and few other top performing rental markets.

Key Takeaways

• 5.95% YoY rent growth, well above national averages.
• Cleveland’s average rent: $1,478.66.
• Local affordability remains strong despite rising rents.
• High rent growth supports investor cash flow and yields.
• Slightly higher vacancy and stable inventory give negotiation leverage.

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Rent Growth Compared to National Averages

The Waller‑Weeks‑Johnson index lists Cleveland’s average rent at $1,478.66 with 5.95% YoY growth in May 2025. That growth outpaces many larger metros:

🔗 Source: Waller, Weeks & Johnson Rental Index and Zillow May 2025 Rent Report

Why Rent Rises Matter for Investors

For real estate investors, high rent growth translates to stronger cash flow and lower risk. In Cleveland:

• Cash flow boost: A 5.95% rent increase adds ~$74/month per unit.
• Strong yield: Avg rent near $1,480 allows attractive cap rates on modest purchase prices
• Protection against inflation: Rising rents help hedge rising expenses and keep net income growing.

Related: First-Time Buyers Vanish as Rentals Dominate U.S. Housing

Affordability + Opportunity

Even with rent up nearly 6%, Cleveland remains affordable:

• Median home price: ~$140K (Redfin May 2025)
• Average rent of $1,478 is ~35% lower than national median (~$2,049 Zillow)
• Average rents represent a lower percentage of income than more expensive metros.

Related: US Housing Affordability is the Gold Standard for Property Investors

Cleveland as an Investor Market

Cleveland shows up frequently on lists of strong value markets: U.S. News ranks it among the top undervalued metros. Here’s why it stands out:

• Low entry cost: Median price ~$140K—makes cash flow easier even in high-rate environment.
• Rent growth: Nearly 6% annual rent increase supports income growth.
• Strong tenant base: A steady demand from working professionals, healthcare, education.
• Moderate vacancy: No oversupply—keeping rental prices stable.

Related: Investing in Cleveland Real Estate: Everything You Need to Know

On-the-Ground Perspective

Local investors report a balanced market. Homes stay listed for ~28 days—longer than coastal metros, but still healthy. That offers negotiation leverage while demand remains steady.

“Cleveland combines affordability and strong rent growth—rare in 2025,” says a local property manager. “It’s a reliable market for stable yields.”

Investor Strategy Tips

• Buy value-add homes: With median prices ~ $140K, small improvements can quickly boost rent.
• Stabilize rents smartly: Raise incrementally—5–6% growth is market-supported.
• Track vacancies: A balanced supply means less risk of overpriced rents.
• Consider financing: Use DSCR or ARM loans to seize deals and optimize cash flow.

Related: How Much Income Cleveland Renters Need to Rent a Home in 2025

Looking Ahead

If rent growth stays near 6%, Cleveland investors could see yield increases of 2–3% annually—excellent in today’s market. As long as jobs and affordability hold, this growth is unlikely to stall.

That makes Cleveland a compelling market for those focused on steady cash flow, low prices, and long-term appreciation.

Related: Cleveland Real Estate Market Report May 2025