ProInvestorHub Market Research

50-City Cap Rate Report — 2026

Cap rates, median prices, rents, and investment strategy scores for the top 50 US real estate markets.

Data: Census ACS, Zillow, Redfin, county assessors • Updated March 2026 • proinvestorhub.com

National Averages (50 Markets)

Avg Cap Rate

6.3%

Avg Median Price

$316,460

Avg Median Rent

$1,537/mo

All 50 Markets — Ranked by Cap Rate

#CityCap RateMedian PriceMedian RentR/P RatioVacancyPop GrowthTax Rate
1Detroit, MI11.2%$85,000$1,0501.24%12.5%-2.8%2.76%
2Cleveland, OH9.8%$105,000$1,1001.05%9.8%-2.1%2.19%
3Memphis, TN9.2%$130,000$1,2000.92%10.2%-1.5%1.45%
4Toledo, OH9.0%$88,000$8500.97%10.8%-3.2%2.05%
5Dayton, OH8.8%$95,000$9000.95%9.5%-1.8%2.10%
6Akron, OH8.6%$100,000$9500.95%8.9%-2.0%2.12%
7Birmingham, AL8.5%$125,000$1,1000.88%9.0%-1.0%0.43%
8Little Rock, AR8.3%$150,000$1,1500.77%8.5%+0.5%0.63%
9Indianapolis, IN8.1%$175,000$1,3500.77%7.5%+3.2%0.84%
10Tulsa, OK7.9%$155,000$1,1500.74%8.0%+1.0%0.99%
11Oklahoma City, OK7.7%$175,000$1,2500.71%7.2%+4.5%0.90%
12Kansas City, MO7.5%$195,000$1,3500.69%7.0%+2.0%1.36%
13St. Louis, MO7.4%$165,000$1,2000.73%8.5%-1.5%1.38%
14Louisville, KY7.3%$195,000$1,3000.67%6.8%+1.5%0.83%
15Pittsburgh, PA7.2%$180,000$1,2500.69%7.5%-0.5%2.15%
16Huntsville, AL7.1%$260,000$1,5000.58%5.5%+14.2%0.42%
17Cincinnati, OH7.0%$195,000$1,3000.67%7.8%+0.8%1.92%
18Columbus, OH6.8%$240,000$1,4500.60%6.2%+7.5%1.78%
19Milwaukee, WI6.7%$175,000$1,1500.66%7.5%-0.5%2.53%
20Des Moines, IA6.6%$200,000$1,2500.63%5.8%+3.5%1.57%
21San Antonio, TX6.5%$250,000$1,4500.58%7.0%+6.8%1.90%
22Baltimore, MD6.5%$180,000$1,3500.75%9.5%-3.0%2.25%
23Jacksonville, FL6.4%$285,000$1,5500.54%6.5%+9.5%0.89%
24Houston, TX6.3%$265,000$1,5000.57%8.0%+5.2%2.03%
25Richmond, VA6.2%$280,000$1,5000.54%6.0%+4.0%1.20%
26Minneapolis, MN6.1%$295,000$1,5500.53%5.5%+2.5%1.28%
27Chicago, IL6.0%$275,000$1,6000.58%7.5%-1.2%2.23%
28Atlanta, GA5.9%$320,000$1,7000.53%6.5%+8.5%1.08%
29Savannah, GA5.9%$275,000$1,4500.53%6.8%+6.5%1.05%
30Knoxville, TN5.8%$270,000$1,4000.52%5.8%+5.5%0.68%
31Dallas, TX5.7%$340,000$1,7000.50%7.2%+8.0%1.93%
32Charlotte, NC5.6%$340,000$1,6500.49%5.8%+12.5%0.83%
33Philadelphia, PA5.6%$240,000$1,5000.63%8.0%-0.8%1.36%
34Tampa, FL5.5%$350,000$1,7500.50%5.5%+9.0%0.86%
35Salt Lake City, UT5.4%$420,000$1,6500.39%4.5%+5.0%0.58%
36Orlando, FL5.3%$355,000$1,7000.48%5.8%+10.5%0.89%
37Nashville, TN5.2%$400,000$1,8000.45%5.5%+10.0%0.66%
38Raleigh, NC5.1%$380,000$1,7000.45%4.8%+15.0%0.80%
39Charleston, SC5.0%$385,000$1,7500.45%5.5%+9.0%0.57%
40Phoenix, AZ4.9%$385,000$1,6500.43%6.0%+11.0%0.62%
41Las Vegas, NV4.8%$380,000$1,6000.42%6.5%+9.5%0.60%
42Sacramento, CA4.7%$450,000$1,8500.41%4.8%+5.5%0.75%
43Boise, ID4.5%$420,000$1,6000.38%4.2%+12.0%0.63%
44Denver, CO4.4%$525,000$1,9000.36%5.5%+6.5%0.51%
45Austin, TX4.3%$450,000$1,7500.39%7.5%+15.0%1.82%
46Portland, OR4.2%$480,000$1,7500.36%5.8%+2.0%1.07%
47Seattle, WA3.8%$720,000$2,2000.31%5.0%+5.0%0.92%
48San Diego, CA3.5%$820,000$2,6000.32%4.2%+3.0%0.73%
49Los Angeles, CA3.2%$900,000$2,7000.30%4.5%-1.0%0.76%
50San Francisco, CA2.8%$1,200,000$3,2000.27%6.0%-2.5%0.68%

Top 10 Markets by Strategy

Best for Cash Flow

1Birmingham, AL6.2
2Little Rock, AR5.8
3Indianapolis, IN5.8
4Detroit, MI5.7
5Cleveland, OH5.7
6Huntsville, AL5.7
7Oklahoma City, OK5.6
8Memphis, TN5.5
9Louisville, KY5.5
10Tulsa, OK5.4

Best for BRRRR

1Detroit, MI7.6
2Cleveland, OH6.7
3Memphis, TN6.2
4Toledo, OH6.2
5Dayton, OH6.2
6Akron, OH6.1
7Birmingham, AL5.9
8Huntsville, AL5.9
9Indianapolis, IN5.8
10Little Rock, AR5.7

Best for House Hacking

1Huntsville, AL6.0
2Oklahoma City, OK5.6
3Indianapolis, IN5.5
4Des Moines, IA5.5
5Akron, OH5.4
6Columbus, OH5.4
7Raleigh, NC5.4
8Detroit, MI5.3
9Cleveland, OH5.3
10Kansas City, MO5.3

Best for Appreciation

1Raleigh, NC7.0
2Austin, TX6.6
3Huntsville, AL6.2
4Charlotte, NC6.2
5Phoenix, AZ6.1
6Boise, ID6.1
7Seattle, WA6.0
8Nashville, TN5.6
9San Diego, CA5.5
10Jacksonville, FL5.3

Key Takeaways

  • Midwest dominates cash flow. Detroit, Cleveland, Memphis, and Indianapolis offer the highest cap rates and rent-to-price ratios, but population decline in some Ohio markets requires careful neighborhood selection.
  • Sun Belt leads appreciation. Raleigh, Austin, Charlotte, Phoenix, and Nashville have the strongest population growth and income dynamics, but cap rates are compressed — these are growth plays, not cash flow plays.
  • Property taxes matter more than you think. Birmingham (0.43%) and Knoxville (0.68%) save investors $3,000–$5,000/year compared to Milwaukee (2.53%) or Detroit (2.76%) at similar price points. Factor taxes into every analysis.
  • Indianapolis is the best all-around market. It ranks in the top 5 for cash flow, BRRRR, and house hacking while maintaining positive population growth — the rare market that works for nearly every strategy.

© 2026 ProInvestorHub.com • Free for personal use • Data is approximate and varies by neighborhood

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