Cap Rate in Richmond, VA

2026 Market Overview for Real Estate Investors

Avg Cap Rate

6.2%

#25 of 50 markets

Median Home Price

$280,000

Purchase price

Median Monthly Rent

$1,500

$18,000/yr gross

Rent-to-Price Ratio

0.54%

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	226,610
5-Year Population Growth	+4.0%
Median Household Income	$50,000
Vacancy Rate	6.0%
Property Tax Rate	1.20%($3,360/yr)

Investor Takeaway

Richmond is an emerging East Coast market with strong millennial in-migration and a growing tech sector. The Fan District and Church Hill offer proven rental demand with appreciation upside.

Quick Math

Estimated annual numbers for a median-priced property in Richmond, VA before financing:

Annual Gross Rent$18,000

Less Vacancy (6.0%)($1,080)

Less Property Tax (1.20%)($3,360)

Less Est. Insurance + Maintenance($5,600)

Estimated NOI$7,960

Implied Cap Rate2.8%

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