Introduction
Cleveland is known for its affordable real estate market and high potential for rental income, making it an attractive location for short-term rental investors. The city’s diverse neighborhoods offer varying levels of returns, and a deep dive into specific zip codes can reveal the most promising areas. Based on the data, here are the top-performing zip codes for short-term rental investments in Cleveland, including details about their gross yields, annual revenue, Zillow home values, and insights into each area’s characteristics.
44112: East Cleveland
- Gross Yield: 43%
- Annual Revenue: $28,196
- Zillow Home Value: $66.1K
East Cleveland, covered by zip code 44112, includes neighborhoods like Forest Hill and parts of Superior. This area is marked by older, historic homes that are often more affordable, which contributes to the higher gross yield of 43%. Despite its challenges, the area has pockets of growth and a strong rental demand due to its proximity to downtown Cleveland and public transportation. Investors can expect lower property acquisition costs combined with a relatively high annual revenue of $28,196, making it a viable choice for those seeking higher returns.
44104: Fairfax & Central
- Gross Yield: 25%
- Annual Revenue: $15,033
- Zillow Home Value: $59.1K
Zip code 44104 covers the Fairfax and Central neighborhoods, both of which have seen increased interest due to ongoing development projects and healthcare institutions like the Cleveland Clinic. With a gross yield of 25%, the area offers a balance between affordability and steady income potential. The annual revenue of $15,033 and a median home value of $59.5K indicate that short-term rentals here can generate solid returns, especially with continued neighborhood revitalization.
44103: Hough & Glenville
- Gross Yield: 25%
- Annual Revenue: $15,105
- Zillow Home Value: $60.3K
This zip code covers neighborhoods like Hough and parts of Glenville, which are undergoing significant redevelopment initiatives. The gross yield of 25% reflects the area’s potential, with many investors focusing on properties near cultural institutions like the Cleveland Museum of Art and the Cleveland Botanical Garden. With annual revenue estimated at $15,105 and Zillow home values around $60.3K, the area offers a strong balance of affordability and rental income, ideal for mid-tier short-term rental investments.
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44124: Lyndhurst
- Gross Yield: 21%
- Annual Revenue: $49,373
- Zillow Home Value: $236.1K
The Lyndhurst neighborhood, represented by zip code 44124, is a suburban area with more upscale homes compared to other zip codes on this list. It has a gross yield of 21%, which, while lower than some inner-city neighborhoods, offers higher stability and less volatility in rental income. With an impressive annual revenue of $49,373 and a Zillow home value of $236.1K, properties in this area attract families and professionals looking for a suburban feel with access to quality schools and amenities, making it suitable for longer-term short-term rental stays.
44110: Collinwood
- Gross Yield: 21%
- Annual Revenue: $15,138
- Zillow Home Value: $72.8K
Zip code 44110 covers the Collinwood neighborhood, a historic area known for its arts and cultural scene, particularly the Waterloo Arts District. With a gross yield of 21%, this area offers solid returns for investors who want to capture the interest of travelers attracted to its vibrant community and waterfront access. The annual revenue of $15,138 and a relatively low Zillow home value of $72.8K suggest it’s an affordable entry point for investors looking to maximize returns in a community with ongoing revitalization efforts.
Conclusion
These zip codes in Cleveland showcase a variety of investment opportunities, ranging from high-yield, lower-cost areas to more stable, suburban neighborhoods with a potential for higher revenues.
