Wondering about the best places to buy rental property in Ohio?
You’re in the right place.
Today, I’ll share the top options and explain why Ohio is a great place for newbie real estate investors.
Want to learn more? Read on!
The six best places to buy rental property in Ohio are:
- Columbus: booming economy, diverse job market, and great student population
- Cincinnati: great universities, thriving arts scene, and strong economy
- Cleveland: growing tech scene, affordable housing, and strong arts scene
- Akron: high rental demand, tech hub, and affordable pricing
- Toledo: large student population, strong job market, and low housing prices
- Portsmouth: low cost, low risk, local university, and strong attractions
What are the best places to buy rental property in Ohio?
If you’re searching for a real estate investment property, it’s important to know what to look for in a location. After all, it can hugely impact your business’s potential if you make the wrong decision. And choosing the right city can increase your return by 10x long-term.
So, I think about these five things when considering a potential real estate investment location:
- Average rental rates: Knowing the average rents in the city (and different neighborhoods) is essential for calculating your return on investment (ROI). You want your rent prices to be competitive but still yield a profit.
- Median property values: Your rental income needs to cover the mortgage, plus profit, for your real estate business to succeed.
- Vacancy rates: The number of vacant properties in the city will show you how the rental market is doing.
- Job growth: High employment growth in the city means more job seekers looking for places to rent.
Median household income: Investing in a place with a high median household income means you can charge higher rents.
But the real key takeaway is this: don’t rush your decision. I rushed one of my first real estate purchases, and it led to a repair bill of over $40,000.
So, even though the recommendations below are great, it’s vital you do your own research and choose the right Ohio city for your portfolio.
I recommend these resources to help you:
- Zillow for average home and rent prices
- Realtor for median home prices and analysis of the housing market
- Point2Homes for median household income
- Redfin for home appreciation rates
And I have even more tips for you in this video:
Now, let’s dive into the best places to buy rental property in Ohio.
1. Columbus
Columbus is home to some really scenic, upscale neighborhoods, so people naturally want to move in.
It also has many job opportunities across a diverse job market, leading to steady population growth every year. In fact, Intel is building massive, expensive infrastructure around Columbus, which is bringing in lots of high-income jobs.
And when it comes to student housing, I know some landlords who buy multiple student rentals in this market. A big part of this is due to Ohio State University. It’s a huge college, so student housing needs are as well.
Median rental price: $1,508
Median property value: $246,481
Vacancy rate: 4.2%
Job growth: 0.8%
Median household income: $61,727
2. Cincinnati
Continuing with student housing, Cincinnati has two great schools: the University of Cincinnati and Xavier University. That’s not to mention Northern Kentucky University, which isn’t that far away, either.
Cincinnati also has a large arts scene, including the Cincinnati Art Museum, Cincinnati Museum Center (great for those with kids), and Playhouse in the Park.
You’ll need to be careful when investing here, though. Cincinnati has a lot of old houses, some of which are really falling apart. So, you’ll need to take extra care with your due diligence and make sure you’re buying a house that doesn’t have a lot of problems.
Median rental price: $1,300
Median property value: $243,816
Vacancy rate: 7.0%
Job growth: 0.9%
Median household income: $48,130
3. Cleveland
With affordable housing and steadily climbing rent prices, Cleveland is an excellent choice for real estate investors. There’s a wide variety of properties on offer, which also make it a solid option.
That’s not to mention its growing tech scene or, like Cincinnati, its strong arts scene. This includes the Cleveland Museum of Art, among others.
Also, for an insider tip, I invest near Case Western and Cleveland Clinic.
Median rental price: $1,195
Median property value: $112,983
Vacancy rate: 6.7%
Job growth: 0.8%
Median household income: $37,351
4. Akron
I like this market because the median home price is low and very affordable. Also, the University of Akron is ranked number 361 in national universities. It’s not the highest number, but the fact it’s even on the list is important to keep in mind.
The city has also been designated a tech hub by the White House, making it a good place for young professionals to settle. If you want a city with growing rental demand and low housing costs, Akron is a good choice.
Median rental price: $1,025
Median property value: $135,607
Vacancy rate: 7.1%
Job growth: 0.0%
Median household income: $45,534
5. Toledo
If you want to invest in student housing, Toledo has a great university with over 11,000 new undergraduates attending every year. That means low vacancy rates and steady cash flow if you market your student property well.
Also, Toledo is home to three major industries: healthcare, education, and manufacturing. In fact, Toledo has even been ranked as the number five manufacturing hub in the United States.
Rental rates are low compared to other Ohio cities, but so are the house prices. This means you can still make a great return on your investment if you calculate properly.
Median rental price: $900
Median property value: $122,522
Vacancy rate: 7.4%
Job growth: 0.1%
Median household income: $65,720
6. Portsmouth
Portsmouth, Ohio may be a small city, but lower costs mean it’s easier to start investing, and there’s lower risk. Plus, there are plenty of attractions drawing people in, such as its state park, floodwall mural, and more.
In fact, one of my students invested here near Shawnee State University. They bought an $80,000 house, did some renovations, and rented it for $1,500/month in cash flow.
With the right strategies, you can do the same.
Median rental price: $625
Median property value: $81,199
Vacancy rate: 5.6%
Job growth: 3.6%
Median household income: $36,051
Is Ohio a good rental market?
So, now that you know the six best cities to buy rental property in Ohio, you might be wondering:
Is it worth investing in Ohio at all?
Good question.
After all, you could invest in states like California, Texas, or Florida, for example. Unlike Ohio, they enjoy a lot of tourism.
But Ohio’s still worth considering. Here’s why:
- Steady rental demand: Ohio is home to many cities with great rental markets. In fact, the population has been rising because of the affordable cost of living and prestigious universities. So, you have a great mix of available renters to market your property to, including students, young professionals, and single families.
- Affordable property values: Ohio has an affordable median property value of under $300,000. Therefore, Ohio is a more accessible choice for new real estate investors. So, if you research smart downpayment strategies, you can start your career with less money down than elsewhere.
- Stable economic growth: Ohio was named the 9th best state in the US for business. That, and a stronger job market means more rental demand.
- Modest rental prices: The median rent in Ohio is $1,300. Affordable rent prices may sound like a bad deal for landlords, but it’s actually the opposite. The low cost of living attracts a wide range of tenants to relocate to Ohio
- Good home appreciation rates: The median house price in Ohio is $233,949, which is a 6.2% increase from the previous year.
- Wide variety of rental opportunities: Whether you’re interested in commercial property, single-family homes, apartment complexes, or fix-and-flip opportunities, Ohio is an excellent choice.
What’s next?
Now you know the best places to buy rental property in Ohio. But choosing the right location is just the beginning. To be a successful real estate investor, you need to learn key concepts like:
- Identifying good investment opportunities
- Negotiating your first property sale
- Finding great tenants
That’s what I teach in my signature coaching program. I’m on a mission to help newbie real estate investors like you create a business that will bring financial freedom and fulfillment.
So, whether you want to retire early or leave your corporate job, I’ll show you the exact method that worked for me and dozens of my students.
Ready to transform your life with real estate? Find out how you can work with me here.
