1st Advantage MortgageInvestors buying in Parma, OH are measured on the rent the property earns. Locally, median gross rent is $1,087 and median real estate taxes are $3,341 a year, which together set how much loan a rent can carry.
What the numbers say about Parma
The Census Bureau's 2020 to 2024 American Community Survey puts median gross rent in Parma at $1,087, close to the Ohio median of $1,034. Median home value sits at $170,100, which is about 21% below the Ohio median of $214,800. By the simple measure of annual rent over home value, Parma sits at 7.7%, a higher-yield profile than most markets in this region. Lenders do not underwrite a ratio like that, but investors use it to decide where to look first.
| Indicator | Ohio | Parma | Difference |
|---|---|---|---|
| Annual property tax bill, median | $2,822 | $3,341 | +18% |
| Household income, median | $71,389 | $69,295 | -3% |
| Typical owner-occupied value | $214,800 | $170,100 | -21% |
| Typical monthly rent | $1,034 | $1,087 | +5% |
| Persons per household | 2.37 | 2.30 | |
| Share in 2-4 unit buildings | 7.9% | 4.2% | -47% |
| Share of homes detached | 68.8% | 77.2% | +12% |
| Workers on their own account | 8.1% | 7.6% | -6% |
| Renters paying 30%+ of income | 45.9% | 43.5% | -5% |
| Units sitting vacant | 8.1% | 5.2% | -36% |
| Typical construction year | 1970 | 1958 | |
| Annual rent divided by value | 5.8% | 7.7% | +33% |
| Households that rent | 32.8% | 27.6% | -16% |
| Tax as a share of home value | 1.31% | 1.96% | +50% |
| Residents (Census estimate) | 11,810,293 | 79,870 |
Only 27.6% of occupied homes in Parma are rented, about 16% below the Ohio median of 33%, so the rental pool is smaller and a vacant unit may take more marketing effort. Incomes matter for rent growth: the median household earns $69,295, close to the Ohio median of $71,389, and 43% of renters are already cost-burdened at 30 percent of income or more.
Homes, buildings and vacancies in Parma
Detached single-family homes make up 77% of the housing units in Parma, so most rentals here compete as houses, and rents follow neighborhood and school boundaries more than building type. The typical home dates to 1958, which puts inspection, insurance on older systems and rehab cost near the top of the checklist.
About 5% of Parma's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 3.2%.
Reading Parma as an investor
A 7.7% gross yield is rich for this region, so Parma files often clear the ratio on paper, and the risks to test are vacancy, repairs and how long a vacant unit sits. Older homes dominate Parma, so ask about roof, panel and plumbing age early, because insurers and appraisers do. With renters at 28% of households, plan for a longer marketing period and a smaller tenant pool than in a renter-heavy city.
Taxes, insurance and hazards in Parma
The Census reports median real estate taxes paid of $3,341 in Parma, about 18% above the Ohio median of $2,822. Against the median value that is an effective rate of roughly 1.96%, compared with 1.31% for Ohio as a whole. At the median rent that tax bill takes roughly 26% of a year's rent before insurance, dues or interest.
County-level hazard data from FEMA (National Risk Index 1.20) shows Cuyahoga County with relatively high overall risk and cold waves (very high), tornadoes (very high) and riverine flooding (relatively high) at the top of the list.
| Hazard in Cuyahoga County, FEMA index | Level |
|---|---|
| Heat waves exposure | Relatively High |
| Riverine flooding exposure | Relatively High |
| Tornadoes exposure | Very High |
| Cold waves exposure | Very High |
| Social vulnerability score | Relatively High |
| Annualized loss estimate | Relatively High |
| Composite risk | Relatively High |
Flood risk in Parma is parcel by parcel: check the address on FEMA's flood map service, because a mapped high-risk zone means required flood cover and a heavier payment.
The ratio in Parma dollars
The quick test for Parma: rent of $1,087 divided by a 1.25 ratio allows a total payment of $870, and subtracting $278 in monthly taxes leaves $591 for the loan, insurance and dues. At 1.00 the allowance is the full $809.
What OH law and Parma require of landlords
Local rental rules in Parma are not summarized here because we could not verify them from a city source. Ask the city and Cuyahoga County about registration, inspection and short-term rental requirements, and confirm what an HOA allows. On lodging taxes, a Parma host should read this first. Ohio's lodging tax covers transient guests who rent for fewer than 30 consecutive days, including Airbnb and VRBO style rentals, and counties may levy an additional lodging tax that operators register for and file under that county's rules.
On deposits, Ohio law (Ohio Rev. Code § 5321.16) says: No statutory cap. That figure belongs in your Parma pro forma as cash you hold, never as rent. Rent regulation: No. A landlord who wants a Parma month-to-month tenant out must give 30 days of notice.
Comparing Parma with surrounding markets
Set Parma ($170,100 median value) beside its neighbors: Cleveland comes in lowest at $102,000, and Lakewood tops the group at $262,200.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Lorain | 43% | $1,708 | $139,200 | 65,395 | $887 |
| Akron | 49% | $1,950 | $122,000 | 189,247 | $955 |
| Lakewood | 56% | $5,266 | $262,200 | 50,007 | $1,070 |
| Cleveland | 58% | $1,759 | $102,000 | 366,097 | $945 |
| Parma | 28% | $3,341 | $170,100 | 79,870 | $1,087 |
Who rents in Parma
Self-employed workers, incorporated or not, make up 7.6% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. Three more data points: government workers are about 10% of employment, 24% of adults hold a bachelor's degree or higher and 9% of commuters travel 45 minutes or more.
Campuses such as Cuyahoga Community College pull tenants into Parma, and landlords near them can plan around move-in seasons.
Next steps for a Parma purchase
Run the Parma rent, tax and insurance figures through the DSCR calculator. When they clear the ratio, start an application or ask for a quote.
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References
- Background reading: Parma, Ohio
- Ohio security deposit statute (Ohio Rev. Code § 5321.16)
- State rule cited for Parma hosts: Ohio Revised Code 5739.09
- For nightly stays in Parma: Ohio Administrative Code 5703-9-64
- 2020 to 2024 ACS data used for Parma
- FEMA risk data used for Parma
The Parma statistics are five-year ACS estimates (2020 to 2024), which have sampling error. Landlord rules for Parma rest on Ohio statutes and the CC BY 4.0 RedFlagLease dataset. Last reviewed October 2026; the city and county have the final word on Parma rules.
Before you make an offer
Before you commit on a Parma deal, confirm the rent with the lease or a market estimate, price the insurance for the exact address, and check how the taxes may change after the sale, so the ratio you run matches the one the lender calculates.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Lease or market rent: what counts in Parma?
Expect to supply a lease, or let the appraiser's rent schedule stand in for one; the Parma median rent of $1,087 is context and not a substitute.
How do taxes and insurance affect a DSCR loan in Parma?
They count in full. A 1.25 ratio on $1,087 of rent permits a payment near $870, and median Parma taxes take about $278 of it each month.
What does Cuyahoga County charge in property tax, in practice?
The median bill is $3,341, an effective rate near 1.96%. Because Cuyahoga County may reassess at sale, use an estimate on the new price when you run the ratio.
Can nightly stays at a Parma property support a DSCR file?
It depends on the program and on local law. A Parma owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
What deposit rules apply to a OH rental?
Landlords in Parma follow Ohio Rev. Code § 5321.16. Limit: No statutory cap. Return deadline: 30 days from move-out.
Should I worry about hazards at a Parma property?
Overall risk is rated relatively high for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Can a company be the borrower on a Parma purchase?
No, but it is common. Entity borrowers supply articles, an operating agreement and an EIN letter, and the owners typically guarantee the loan. A Ohio attorney can advise on structure.