Cleveland Real Estate Market 2026: PropertyIQ Score 88, One of the Nation's Top Cash Flow Markets

The Cleveland real estate market 2026 scores 88 out of 100 on the PropertyIQ index as of February 28, 2026.

That is not a soft number. Among every tracked metro in the United States, Cleveland sits in the top tier of the PropertyIQ score distribution. The 88 reflects a market where demand consistently outpaces available supply, where home prices sit well below what local incomes can support, and where Zillow's own forecast puts 12-month appreciation at 3.4%.

This report covers the full picture: what drives the score, what the rental math looks like, which neighborhoods attract the most investor activity, and where the real risks sit for anyone putting capital into Cleveland in 2026.

What the PropertyIQ Score of 88 Means for Cleveland

PropertyIQ scores every U.S. metro monthly on a 0-to-100 scale. The score weighs supply-demand balance, valuation relative to local income fundamentals, price trajectory, and demand absorption. A score of 88 puts Cleveland in the same tier as Detroit (90) and Toledo (86) -- affordable Midwest metros where the supply-demand equation is tight and incomes can actually support buying.

What separates a score of 88 from a score of 60 or 70 is the combination of inputs. Cleveland is not scoring high because of one dominant factor. It scores high because multiple indicators are aligned in the same direction at the same time: constrained supply, high demand absorption, below-fundamental pricing, and a positive near-term appreciation forecast.

The score does not predict the future. It measures where the market sits today. An 88 in February 2026 means the current conditions are favorable. Whether they remain favorable depends on the risks discussed later in this report.

Cleveland Real Estate Market 2026: The Core Numbers

PropertyIQ Score: 88 out of 100 (February 28, 2026)

Demand score: 88.6 out of 100. Among all tracked metros, Cleveland's demand component is one of the highest. That figure reflects how quickly active listings are absorbing into pending status relative to the pace of new supply entering the market.

Pending-to-active ratio: 0.7442 as of February 2026. Of every 100 homes currently listed for sale in the Cleveland metro, 74 are already under contract. That is an unusually high absorption rate. For comparison, Columbus runs at 76.9% but scores 17 points lower because its pricing is further out of alignment with local incomes.

Sale-to-list ratio: 100% as of November 2025. Sellers in Cleveland receive exactly their asking price on average. This is not a market where buyers negotiate discounts. It is a market where correctly priced homes sell at ask.

Median listing price: $241,220 as of February 1, 2026.

Zillow median home value: approximately $238,501 as of January 2026.

Active inventory: 2,827 homes for sale as of February 2026.

New listings trend: New listings fell 2.44% year over year. Supply is not growing to meet demand, which is what keeps the score elevated.

Price trajectory: Home values are essentially flat year over year, down 0.21% as of February 2026. That is not a momentum market. It is a value market with a positive forward-looking indicator: Zillow forecasts 3.4% appreciation over the next 12 months as of December 2025.

Five-year appreciation: 27.02% since 2021. That is a meaningful long-term track record for a market at this price point.

Valuation: Why Cleveland Sits 29% Below Fundamental Value

The most distinctive element of the Cleveland real estate market in 2026 is the valuation picture.

Cleveland is approximately 29% below fundamental value as of February 2026. That figure is derived from the income needed to purchase at current prices against the actual median household income in the metro.

To purchase a home at the Cleveland median listing price of $241,220, a household needs an estimated income of approximately $64,115 per year. The Cleveland metro median household income is $68,507 (2023 Census). That means the median-income household in Cleveland can qualify to buy at the median price.

That is rare in 2026. Across most major U.S. metros, the income required to qualify for a mortgage at the median listing price exceeds what the median household earns. In Cleveland, those two numbers not only align -- the household income side has a $4,392 cushion above what is needed to buy.

When the income math works at the median, the market has a natural floor of qualified buyers. That buyer pool is what drives the 88.6 demand score and the 74% pending-to-active ratio. When people can actually afford what is for sale, they buy it.

Cleveland Rental Market 2026: The Cash Flow Analysis

Cleveland consistently appears on national rankings of the top cash flow real estate markets. The data supports the reputation.

Average rent: approximately $1,382 per month as of December 2025.

Zillow median home value: approximately $238,501 as of January 2026.

Monthly rent-to-price ratio: $1,382 divided by $238,501 equals approximately 0.58% per month. On an annualized basis, that is roughly 6.95% gross rental yield before expenses.

For context, a 0.5% monthly rent-to-price ratio has historically been used as a threshold indicator for cash flow viability. Cleveland clears that threshold.

The practical cash flow picture for out-of-state investors depends on two additional variables: property management costs (typically 8-12% of gross rents in Cleveland) and vacancy rates. At a $241,000 purchase price with 25% down, a 7.0% 30-year mortgage rate, and $1,382 per month in rent, monthly PITI runs approximately $1,580 to $1,650 depending on insurance and tax estimates. That is approximately breakeven to slightly negative cash flow before management on a median-priced property.

The cash flow math improves substantially at lower price points. Cleveland has a significant inventory of properties in the $100,000 to $160,000 range throughout its working-class neighborhoods. At those price levels, with rents in the $900 to $1,100 range on single-family rentals, cash-on-cash returns before management can reach 8-12% on well-underwritten deals.

The neighborhood section below explains where those price points exist and what the additional due diligence requirements look like.

Cleveland's Economic Foundation

Understanding the Cleveland real estate market in 2026 requires understanding what is holding the economy together.

Cleveland Clinic: The Cleveland Clinic is the largest employer in Ohio with more than 52,000 employees in the Cleveland metro area. It is consistently ranked among the top hospitals in the United States and continues to expand. The Clinic is a recession-resistant employment anchor. Healthcare employment does not evaporate during economic downturns the way manufacturing or retail employment does. For real estate investors, a market with a dominant healthcare employer is a market with stable, income-qualified renters.

University Hospitals: University Hospitals is Cleveland's second major health system with approximately 30,000 employees across its network. Combined with the Cleveland Clinic, the healthcare sector accounts for a substantial share of the metro's professional workforce and drives sustained demand for rental housing near the medical corridor.

Case Western Reserve University: One of the top research universities in the country, CWRU enrolls approximately 12,000 students and employs thousands of faculty and staff. The university drives concentrated rental demand in the University Circle neighborhood, one of Cleveland's tightest rental submarkets.

Federal Reserve Bank of Cleveland: The Cleveland Fed is one of the 12 regional Federal Reserve banks, providing a stable base of professional employment in finance and economics.

KeyBank and corporate anchors: KeyBank is headquartered in Cleveland, as is Sherwin-Williams, one of the largest companies by revenue in Ohio. These corporate anchors provide employment for professional-class renters who are among the most reliable tenants in the investor market.

The structural challenge: Job growth in the Cleveland metro was -1.25% as of June 2025. That is the headline risk in this market. Population has been declining steadily for decades and job growth has not been consistent. The healthcare anchor mitigates this significantly, but investors underwriting Cleveland deals should model conservative assumptions on rent growth and factor in the population headwind explicitly in their projections.

Cleveland Neighborhoods: Where Investors Are Active in 2026

The Cleveland real estate market is not uniform. Score, price, and cash flow dynamics vary considerably by submarket.

Slavic Village: Located on Cleveland's southeast side, Slavic Village is one of the most frequently cited neighborhoods for cash flow investors. Median home prices in parts of Slavic Village fall well below the metro median, producing stronger rent-to-price ratios for buyers who accept the additional due diligence required in an older, lower-income neighborhood. Vacancy is a real factor here and conservative underwriting is essential. Investors who do property-level diligence and buy with adequate reserves consistently report the neighborhood is viable.

Detroit-Shoreway: This west side neighborhood has experienced significant revitalization over the past decade. It features arts venues, restaurants, and a mix of renovated housing stock that attracts young professional tenants. Rental demand from this tenant profile has pushed rents upward relative to purchase prices, and investor competition is meaningfully higher here than in purely working-class submarkets. Entry prices have risen as a result.

Ohio City: Adjacent to downtown, Ohio City is one of Cleveland's highest-demand rental submarkets. Proximity to downtown employment, the West Side Market, and a dense amenity base drives sustained rental demand from a tenant base that is employed and income-qualified. Purchase prices are elevated relative to outer neighborhoods, but vacancy is lower and tenant quality is higher on average.

Tremont: On the south side near downtown, Tremont is a walkable, arts-forward neighborhood with strong rental demand. It attracts both residential buyers and long-term renters. Entry-level investment property prices have risen as the neighborhood has been discovered by investors, but core fundamentals remain solid for buy-and-hold strategies.

Collinwood: On Cleveland's northeast side, Collinwood offers a range of property types at lower price points. Investor activity has increased here as Slavic Village entry prices have risen. The same due diligence requirements apply: conservative vacancy underwriting, thorough inspections on older stock, and a local property manager with experience in the submarket.

University Circle and surroundings: University Circle itself has extremely tight rental availability due to the healthcare and university employment concentration in a small geographic area. East Cleveland, adjacent to the Circle, offers the lowest purchase prices in the immediate area but requires the most careful tenant screening and property management. The risk-adjusted returns in this submarket attract experienced investors rather than first-time buyers.

Cleveland vs. Other Midwest Markets in 2026

Investors comparing Midwest options will find Cleveland near the top of the PropertyIQ ranking among Ohio and broader Midwest metros.

Detroit, Michigan scores 90 out of 100 as of February 2026, two points above Cleveland. Detroit's median listing price is $235,000 versus Cleveland's $241,220 -- a modest difference. The key differentiator is the five-year track record: Detroit's five-year appreciation is -6%, while Cleveland's is +27.02%. For investors who want an Ohio address and a better long-term appreciation history, Cleveland has a clear edge on that metric.

Toledo, Ohio scores 86 out of 100, two points below Cleveland. Toledo's median listing price of $199,897 improves the cash flow math at the median, but Toledo's inventory grew 30% year over year in 2026. Cleveland's inventory is contracting (-2.44% new listings). Tighter supply in Cleveland means more durable pricing dynamics.

Columbus, Ohio scores 71 out of 100. Columbus is a genuine growth market with a stronger job trajectory than Cleveland, but it is 13.5% overvalued relative to local fundamentals and carries a median listing price of $349,900. The cash flow math is substantially weaker in Columbus than in Cleveland. Investors who want Ohio exposure and prioritize yield over growth are going to find Cleveland more aligned with those goals.

For investors who weight current supply-demand conditions, below-fundamental valuation, and proven cash flow potential, Cleveland scores better than every other major Ohio market using the PropertyIQ methodology.

The Risks in the Cleveland Real Estate Market

No market analysis is complete without a clear-eyed accounting of the downside.

Negative job growth: The -1.25% job growth rate as of June 2025 is the most significant structural concern. Jobs drive population, population drives rental demand, and rental demand drives rents and vacancy rates. If job losses accelerate rather than stabilize, vacancy rates will rise and rent growth will stall or reverse. The healthcare anchor provides a buffer, but it is not a guarantee.

Population decline: Cleveland has been losing population for decades. The decline is structural, tied to deindustrialization and the long-term shift of the Midwest manufacturing base. Healthcare and education employment has partially offset this, but the trend is a real headwind for anyone projecting meaningful rent appreciation over a 5-10 year horizon.

Concentrated economic risk: Unlike diversified metros with multiple independent economic drivers, Cleveland's economy is more concentrated. A meaningful reduction in healthcare employment or a shift in the Clinic's expansion plans would have an outsized impact on the rental market relative to a more diversified metro.

Deferred maintenance and inspection risk: Cleveland's housing stock is old. Many investment properties in the most affordable neighborhoods require significant capital expenditure to bring to rentable condition. Investors who buy without a thorough inspection and a realistic rehab budget have consistently underperformed those who build those costs into the purchase analysis upfront.

Property management dependency: Cleveland is not a market that performs well for passive, hands-off investors without local operators. Out-of-state buyers who skip quality property management to protect margin typically discover that the savings are offset by higher vacancy, deferred repairs, and turnover costs.

Who Should Invest in the Cleveland Real Estate Market in 2026

Based on the PropertyIQ data and the structural factors above, Cleveland in 2026 is best suited for specific investor profiles.

Cash flow investors who prioritize monthly rent relative to purchase price over appreciation upside will find Cleveland on the short list. The approximately 7% gross yield at median prices, improving to 9-12% on lower-priced well-selected properties, is the primary draw. If the investment thesis requires the rent check to cover or approximate the mortgage, Cleveland delivers that math in a way that most major metros in 2026 do not.

Value investors who want to buy at 29% below fundamental value in a market where median incomes actually qualify to buy at median prices. In a 2026 landscape where most major metros are overvalued relative to income fundamentals, Cleveland's discount is structurally unusual and difficult to find at comparable price points.

Experienced out-of-state landlords with a property management system already in place or a clear plan to engage a local PM firm before closing. Cleveland's out-of-state investor activity is substantial, and the property management infrastructure exists to support it. The key condition is not attempting to self-manage at a distance.

Cleveland is not the right market for investors who need near-term price appreciation as the primary return driver. The 88 score reflects strong supply-demand conditions; it does not change the reality of negative job growth and decades of population decline. Those factors place a ceiling on the appreciation upside that differentiated growth markets do not have.

Cleveland Real Estate Market 2026: The Summary

The Cleveland real estate market 2026 scores 88 out of 100 on the PropertyIQ index. The combination of a 74% pending-to-active ratio, 100% sale-to-list pricing, 29% below-fundamental valuation, and a $241,220 median listing price creates conditions where demand is real and the entry math works for buyers across the income spectrum.

The risks are real and should be underwritten explicitly: negative job growth, a decades-long population decline, and an economic base more concentrated in healthcare than diversified metros. Investors who account for these risks in their projections will find Cleveland a more durable market than its low price points might suggest on first look.

PropertyIQ scores Cleveland as one of the stronger-positioned markets in the Midwest for investors who prioritize supply-demand fundamentals and below-fundamental valuation in 2026.

PropertyIQ score as of February 28, 2026. Listing and inventory data as of February 1, 2026. Rent and forecast data as of December 2025. Census and economic data 2023-2025. All data for informational purposes only. Not investment advice.