Cap Rate in Pittsburgh, PA

2026 Market Overview for Real Estate Investors

Avg Cap Rate

7.2%

#15 of 50 markets

Median Home Price

$180,000

Purchase price

Median Monthly Rent

$1,250

$15,000/yr gross

Rent-to-Price Ratio

0.69%

Moderate

Cap Rate Rating

Good

Strong return relative to market norms. Common in cash-flow-focused markets in the Midwest and South.

Market Snapshot

Population	302,407
5-Year Population Growth	-0.5%
Median Household Income	$50,000
Vacancy Rate	7.5%
Property Tax Rate	2.15%($3,870/yr)

Investor Takeaway

Pittsburgh has successfully transitioned from steel to tech and healthcare. The eds-and-meds economy supports stable rental demand, though higher property taxes eat into cash flow.

Quick Math

Estimated annual numbers for a median-priced property in Pittsburgh, PA before financing:

Annual Gross Rent$15,000

Less Vacancy (7.5%)($1,125)

Less Property Tax (2.15%)($3,870)

Less Est. Insurance + Maintenance($3,600)

Estimated NOI$6,405

Implied Cap Rate3.6%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.