Cap Rate in St. Louis, MO

2026 Market Overview for Real Estate Investors

Avg Cap Rate

7.4%

#13 of 50 markets

Median Home Price

$165,000

Purchase price

Median Monthly Rent

$1,200

$14,400/yr gross

Rent-to-Price Ratio

0.73%

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	293,310
5-Year Population Growth	-1.5%
Median Household Income	$45,000
Vacancy Rate	8.5%
Property Tax Rate	1.38%($2,277/yr)

Investor Takeaway

St. Louis offers strong cash flow in a market with significant neighborhood variation. Focus on the south city corridor and near university areas for the best risk-adjusted returns.

Quick Math

Estimated annual numbers for a median-priced property in St. Louis, MO before financing:

Annual Gross Rent$14,400

Less Vacancy (8.5%)($1,224)

Less Property Tax (1.38%)($2,277)

Less Est. Insurance + Maintenance($3,300)

Estimated NOI$7,599

Implied Cap Rate4.6%

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