Cleveland is one of the cities in Ohio with the lowest home prices. Recently, there has been an increase in inquiries driven by affordable sale prices, but surprisingly few buyers check the property tax rates as well.

The average effective tax rate in Cuyahoga County, where Cleveland is located, is about 1.8%, and within the city of Cleveland, the median effective tax rate is higher at about 2.29%. Particularly, there is a variation by zip code ranging from 2.08% to 3.57% depending on school districts and municipalities, which exceeds both the Ohio average (about 1.6%) and the national average (about 1%).

According to data from Zillow and Redfin, the average home value in Cleveland is around $120,000 to $142,000. Based on a median value of $125,000 and applying the city tax rate of about 2.2%, the annual property tax is calculated to be approximately $2,750. While the absolute amount is not large, the ratio compared to home prices is quite high.

Insurance premiums should be estimated at around $1,300 to $1,500 annually, reflecting the heavy snowfall and strong winds typical of the Great Lakes region, as well as summer thunderstorms. Some insurance companies may offer additional riders due to the area's vulnerability to tornadoes.

Maintenance costs should realistically be estimated at around 1.8% of the home price, or about $2,200 to $2,300 annually, considering that many homes in Cleveland are nearly 100 years old. While the absolute burden of maintenance costs is not high compared to low home prices, it is important to check the timing for plumbing and electrical wiring replacements in advance.

The total annual holding costs can be summarized as follows:

• Property Tax: Approximately $2,750
• Home Insurance: Approximately $1,300 to $1,500
• Maintenance Costs: Approximately $2,200 to $2,300

In total, this amounts to about $6,250 to $6,550 annually, or $520 to $550 per month. While the tax rate may seem burdensome, the absolute amount is among the lowest in major U.S. cities, making it a market with a low entry barrier for both residents and investors.

The Ohio Homestead Exemption applies equally in Cleveland, allowing low-income owners who are 65 or older or disabled to receive a partial exemption on the assessed value. You can check your eligibility for the exemption and the tax rate online at the Cuyahoga County Fiscal Officer's website, so it's advisable to verify this before making a purchase.