Overview

Description

Contact:
TOM JOHNSTON
Managing Director | Designated Broker
SVN | SFRhub Marketplace
T: 602.441.5354
C: 602.403.3695
tom.johnston@svn.com
License #: BR507919000

BOR:
SVN | First Place Commercial Realty LLC
Victor S. Voinovich, Sr
License #: 264083

SVN | SFRhub Marketplace is excited to offer a collection of 184 rental homes to qualified investors in Cleveland, OH. This distinctive SFR portfolio primarily features Section 8 homes that are notably under-rented. Comprising 80 single-family homes, 18 duplexes (36 units), several 4-plexes, and 5 multi-family properties with 5 to 8 units each, these homes range from 653 to 3,806 square feet, averaging at 1,084 square feet. Built between 1870 and 2002, with an average vintage of 1916, the portfolio includes two 1-bedroom homes, seventy-eight 2-bedroom homes, ninety-five 3-bedroom homes, eight 4-bedroom homes, and one 5-bedroom home, all currently fully leased to thoroughly vetted tenants.

Many of these homes have been under the seller’s ownership for decades and have been meticulously maintained for rental purposes. All properties have undergone capital improvements, with over one-third completely renovated within the last 20 years, over 20% significantly upgraded in the past 25 years, and the rest benefiting from cosmetic enhancements such as paint and carpet. Tenants residing in homes with cosmetic upgrades have been in place since the seller’s ownership.

Despite an average monthly market rent of $1,012, this portfolio is currently 10% under-rented, with current average rents at $909 per month per home. According to John Burns Real Estate Consulting (“JBRC”), Cleveland rents saw a 2.9% growth in 2023, with a projected 9% increase in the coming years. Home values in the area also rose by 7.6% in 2023, and JBRC forecasts a 9.2% increase through 2026. At an average price of $65,217 per home, this amounts to one-third of Cleveland’s median home price of $194,000, as per JBRC data.
Cleveland holds the top spot, according to Lima One, a leading lender in the SFR asset class, as the #1 market for SFR investors aiming to maximize cash flow. With a Price to Rent ratio of 7.6 (meaning a property priced at $91,000 for every $1,000 of monthly rent, or $12,000 annually), Cleveland surpasses Birmingham, AL (8.4) and Dayton, OH (9.3) in this ranking.

For potential buyers, there exists a substantial opportunity to reduce costs and increase rents. An experienced investor could achieve efficiencies and cost reductions by engaging a professional management firm, as the seller has self-managed this portfolio with a small team for years. Given that 75% of the homes are government subsidized, investors familiar with Section 8 housing stand to benefit significantly. Many tenants currently occupy homes larger than their voucher qualifications, presenting a chance to optimize returns. For instance, a tenant with a one-room voucher may be residing in a 3-bedroom home at the single voucher rate. Additionally, transferring utility expenses to tenants could enhance Net Operating Income (NOI), as the seller has historically covered the majority of these costs.

This opportunity is ideal for an investor well-versed in Section 8 housing, skilled in expense optimization, capable of raising rents upon lease renewals, and who acknowledges the fundamentally strong real estate market in Cleveland.


Cleveland, Ohio, known as “The Forest City,” is a thriving metropolis nestled along the southern shores of Lake Erie. This city with a rich industrial past has undergone significant revitalization in recent years, emerging as a hub of economic activity, cultural diversity, and urban renewal. From its renowned healthcare institutions to its burgeoning tech industry, Cleveland offers a promising landscape for businesses, residents, and investors alike.

At the heart of Cleveland’s economy is its robust healthcare sector. Home to institutions like the Cleveland Clinic, University Hospitals of Cleveland, Metro Health, and Medical Mutual of Ohio, the city boasts world-class medical services and substantial job creation. These healthcare giants not only contribute to the city’s economic stability but also drive innovation in the medical field.

In addition to healthcare, Cleveland is making strides in biotechnology and fuel cell research. The city has become a magnet for innovative companies and research institutions, attracting top talent and fostering a dynamic ecosystem of entrepreneurship.

Cleveland’s reputation as a rising tech hub is also gaining momentum. Reports from Cleveland.com highlight an increasing number of high-tech workers from Silicon Valley relocating to the city and the state of Ohio. This influx of talent has positioned Cleveland as a center for cutting-edge research, development, and technology-driven enterprises.

Cleveland’s skyline reflects its commitment to urban renewal and modernization. The cityscape features impressive skyscrapers, historic buildings transformed into modern lofts, and state-of-the-art facilities. Notable among these is the Flats East Bank development, a $750 million project that has revitalized the waterfront into a lively entertainment, dining, and residential hub.

Neighborhood revitalization efforts extend beyond downtown to areas like Ohio City, Tremont, and Detroit Shoreway. These initiatives preserve the historic charm of these neighborhoods while introducing modern amenities, attracting residents and businesses alike.

Cleveland prides itself on its diverse population, reflecting a tapestry of cultures, backgrounds, and traditions. The city’s neighborhoods are vibrant and eclectic, each offering a unique character and sense of community.

A notable trend is the growing millennial population drawn to Cleveland’s affordable cost of living, vibrant arts scene, and recreational opportunities. The city’s museums, theaters, music venues, and culinary offerings cater to a wide range of tastes and interests.

Cleveland celebrates its cultural heritage through annual events and festivals. From the Cleveland International Film Festival to the world-class performances of the Cleveland Orchestra, the city offers diverse cultural experiences for residents and visitors alike.



Cleveland’s economic growth, demographic diversity, and urban revitalization efforts have created a buoyant real estate market. The average home price of $194,000, as reported by John Burns Real Estate Consultants, presents an attractive opportunity for buyers.

Investors keen on Cleveland’s real estate market find ample opportunities for growth and profitability. The recent offering of a portfolio of 184 rental homes by SVN | SFRhub Marketplace underscores the potential in the rental property sector.



In conclusion, Cleveland, Ohio, is a city with a bright future, blending economic growth, cultural vibrancy, and investment potential. Its healthcare prowess, burgeoning tech industry, and infrastructure developments position it as an attractive destination for businesses and residents alike. With ongoing urban renewal projects, a thriving arts scene, and a dynamic real estate market, Cleveland offers a wealth of opportunities for those looking to invest, work, and live in a city on the rise. Whether exploring its scenic waterfront, vibrant neighborhoods, or rich cultural offerings, Cleveland invites all to be part of its exciting journey toward continued prosperity.

Highlights

• 141 homes are Section 8 properties
• Average vintage of homes is 1916
• Average home size: 1,084 square feet
• Variety of one, two, three, four, and five-bedroom homes
• Mix of single-family homes, duplexes, and small multi-family properties
• Fully leased to thoroughly vetted tenants (100% occupancy)
• Current rents are 10% below market rates
• Average home price: $65,217, one-third of Cleveland’s median home price
• Assured rent through government-subsidized Section 8 housing
• Value-add potential through property management efficiencies and transitioning utility costs to tenants
• In-place Cap Rate: 8.98%
• Year 1 Stabilized Cap Rate: 13.98%
• All SVN® Offices Are Independently Owned & Operated
• Local Broker License Information: www.SFRhub.com/realestatelicensing

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