Due to bolt looseness or operating ambient temperature, fit clearance can often be found between the outer ring and housing. The vibration characteristics of a cylindrical roller bearing with localized defects are greatly affected by the fit clearance and the accuracy of bearing fault diagnosis may be reduced. Thus, a mathematical model for a cylindrical roller bearing was constructed and the interaction between the outer ring and housing was described. The classical localized defects were modeled, such as the inner ring defect, outer ring defect and roller defect. The relative experiments were conducted to check the constructed model. Then, it was found that the RMS (Root Mean Square) of housing acceleration decreased with increasing housing stiffness and viscous damping. When the fit clearance and friction coefficient increased, the RMS values increased. Except for housing stiffness and viscous damping, there were no uniform change rules of defect frequency amplitudes for other conditions. In the bearing with an outer ring defect or roller defect, the shock times of housing acceleration and the contact force between outer ring and housing were delayed, while fit clearance decreased. However, contrary variation trends were found for the inner ring defect. If the phase difference between defect location and rotor unbalanced force increased, the RMS and acceleration fluctuation amplitudes for the inner ring defect decreased. When the location angle of the outer ring defect increased, RMS and frequency amplitudes increased and RMSy/RMS decreased. The calculated results may provide the theoretical foundation for condition monitoring rotating machinery systems.