Cap rates by city
For each of the 100 largest US metros, we estimate cap rates from default costs in the analyzer and Census median home value. Fair market rent for a HUD 2-bedroom unit gives us the rent figure.
| Metro | Est. cap rate | Gross yield | Median value | 2-bed FMR | People (2024) |
|---|---|---|---|---|---|
| New York-Newark-Jersey City, NY-NJ | 3.49% | 5.80% | $614,200 | $2,971 | 19,798,537 |
| Los Angeles-Long Beach-Anaheim, CA | 2.29% | 4.08% | $871,300 | $2,964 | 12,974,487 |
| Chicago-Naperville-Elgin, IL-IN | 3.42% | 7.47% | $323,000 | $2,011 | 9,371,595 |
| Dallas-Fort Worth-Arlington, TX | 2.29% | 6.03% | $359,500 | $1,807 | 7,985,590 |
| Houston-Pasadena-The Woodlands, TX | 2.08% | 6.03% | $298,000 | $1,497 | 7,442,788 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 2.63% | 5.05% | $579,900 | $2,438 | 6,318,377 |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 3.74% | 6.34% | $351,900 | $1,860 | 6,272,014 |
| Atlanta-Sandy Springs-Roswell, GA | 3.08% | 5.75% | $367,600 | $1,762 | 6,256,377 |
| Miami-Fort Lauderdale-West Palm Beach, FL | 3.94% | 6.94% | $443,300 | $2,564 | 6,249,291 |
| Phoenix-Mesa-Chandler, AZ | 2.94% | 4.72% | $440,900 | $1,734 | 5,028,754 |
| Boston-Cambridge-Newton, MA-NH | 2.96% | 5.59% | $646,300 | $3,008 | 4,953,354 |
| Riverside-San Bernardino-Ontario, CA | 2.55% | 4.71% | $536,300 | $2,103 | 4,675,704 |
| San Francisco-Oakland-Fremont, CA | 1.36% | 2.95% | $1,140,700 | $2,805 | 4,645,029 |
| Detroit-Warren-Dearborn, MI | 3.36% | 7.01% | $249,700 | $1,459 | 4,376,828 |
| Seattle-Tacoma-Bellevue, WA | 2.30% | 4.26% | $717,500 | $2,549 | 4,061,920 |
| Minneapolis-St. Paul-Bloomington, MN-WI | 2.63% | 5.56% | $374,000 | $1,734 | 3,713,668 |
| Tampa-St. Petersburg-Clearwater, FL | 3.54% | 6.67% | $345,100 | $1,917 | 3,304,691 |
| San Diego-Chula Vista-Carlsbad, CA | 2.20% | 3.96% | $854,700 | $2,823 | 3,288,774 |
| Denver-Aurora-Centennial, CO | 2.48% | 4.31% | $603,800 | $2,169 | 3,002,721 |
| Baltimore-Columbia-Towson, MD | 3.29% | 6.15% | $391,300 | $2,006 | 2,849,436 |
| St. Louis, MO-IL | 3.26% | 6.61% | $244,800 | $1,349 | 2,810,850 |
| Orlando-Kissimmee-Sanford, FL | 3.41% | 6.36% | $369,800 | $1,959 | 2,793,746 |
| Charlotte-Concord-Gastonia, NC-SC | 3.42% | 6.01% | $356,400 | $1,785 | 2,768,407 |
| San Antonio-New Braunfels, TX | 2.04% | 6.20% | $278,800 | $1,441 | 2,662,733 |
| Portland-Vancouver-Hillsboro, OR-WA | 1.98% | 4.03% | $559,400 | $1,878 | 2,520,987 |
| Pittsburgh, PA | 3.92% | 7.75% | $215,000 | $1,389 | 2,439,940 |
| Austin-Round Rock-San Marcos, TX | 1.54% | 4.69% | $465,000 | $1,817 | 2,426,592 |
| Sacramento-Roseville-Folsom, CA | 2.45% | 4.48% | $589,500 | $2,201 | 2,426,388 |
| Las Vegas-Henderson-North Las Vegas, NV | 2.92% | 4.69% | $431,000 | $1,686 | 2,329,548 |
| Cincinnati, OH-KY-IN | 3.24% | 6.69% | $258,600 | $1,442 | 2,270,706 |
| Kansas City, MO-KS | 3.33% | 6.46% | $287,300 | $1,546 | 2,218,142 |
| Columbus, OH | 3.10% | 6.39% | $300,800 | $1,602 | 2,175,788 |
| Cleveland, OH | 2.97% | 7.10% | $215,400 | $1,274 | 2,171,526 |
| Indianapolis-Carmel-Greenwood, IN | 3.99% | 6.93% | $265,900 | $1,536 | 2,130,055 |
| Nashville-Davidson--Murfreesboro--Franklin, TN | 3.07% | 5.27% | $409,600 | $1,798 | 2,079,596 |
| San Jose-Sunnyvale-Santa Clara, CA | 1.30% | 2.71% | $1,447,800 | $3,272 | 1,969,337 |
| Virginia Beach-Chesapeake-Norfolk, VA-NC | 3.29% | 5.87% | $340,900 | $1,667 | 1,787,235 |
| Providence-Warwick, RI-MA | 2.31% | 5.34% | $422,500 | $1,879 | 1,684,071 |
| Jacksonville, FL | 3.03% | 5.92% | $343,400 | $1,694 | 1,683,960 |
| Milwaukee-Waukesha, WI | 1.60% | 4.95% | $306,400 | $1,263 | 1,568,938 |
| Raleigh-Cary, NC | 2.60% | 4.84% | $418,400 | $1,689 | 1,487,302 |
| Oklahoma City, OK | 3.06% | 6.59% | $230,000 | $1,264 | 1,463,267 |
| Louisville/Jefferson County, KY-IN | 3.29% | 6.16% | $248,700 | $1,276 | 1,372,558 |
| Memphis, TN-MS-AR | 3.27% | 6.35% | $245,900 | $1,301 | 1,341,924 |
| Richmond, VA | 3.15% | 5.60% | $353,500 | $1,651 | 1,341,248 |
| Salt Lake City-Murray, UT | 2.16% | 3.76% | $515,400 | $1,615 | 1,275,870 |
| Birmingham, AL | 3.94% | 6.87% | $240,200 | $1,375 | 1,184,613 |
| Fresno, CA | 2.86% | 5.19% | $389,400 | $1,685 | 1,177,665 |
| Grand Rapids-Wyoming-Kentwood, MI | 3.81% | 6.86% | $285,300 | $1,630 | 1,162,152 |
| Buffalo-Cheektowaga, NY | 3.07% | 7.55% | $226,100 | $1,423 | 1,161,343 |
| Hartford-West Hartford-East Hartford, CT | 2.78% | 6.96% | $333,500 | $1,933 | 1,153,112 |
| Tucson, AZ | 3.00% | 5.27% | $319,700 | $1,405 | 1,060,490 |
| Rochester, NY | 2.92% | 8.30% | $204,600 | $1,416 | 1,058,413 |
| Tulsa, OK | 3.06% | 6.65% | $221,700 | $1,229 | 1,037,534 |
| Urban Honolulu, HI | 2.17% | 3.40% | $897,500 | $2,542 | 1,001,146 |
| Omaha, NE-IA | 2.52% | 6.48% | $268,600 | $1,450 | 982,064 |
| New Orleans-Metairie, LA | 3.60% | 6.83% | $260,200 | $1,480 | 981,662 |
| Greenville-Anderson-Greer, SC | 4.12% | 6.83% | $264,600 | $1,507 | 961,939 |
| Bridgeport-Stamford-Danbury, CT | 2.16% | 5.10% | $564,500 | $2,399 | 956,330 |
| Knoxville, TN | 3.73% | 6.10% | $290,200 | $1,475 | 932,241 |
| Albuquerque, NM | 3.05% | 5.77% | $287,800 | $1,384 | 921,482 |
| Bakersfield-Delano, CA | 3.18% | 5.87% | $338,300 | $1,656 | 915,075 |
| Albany-Schenectady-Troy, NY | 3.16% | 7.18% | $285,900 | $1,711 | 906,052 |
| McAllen-Edinburg-Mission, TX | 3.05% | 8.66% | $140,900 | $1,017 | 891,977 |
| North Port-Bradenton-Sarasota, FL | 3.61% | 6.53% | $402,200 | $2,188 | 889,339 |
| Baton Rouge, LA | 2.50% | 5.72% | $241,100 | $1,149 | 875,313 |
| El Paso, TX | 2.29% | 7.63% | $180,200 | $1,146 | 874,182 |
| Allentown-Bethlehem-Easton, PA-NJ | 3.73% | 7.34% | $300,800 | $1,839 | 873,603 |
| Worcester, MA | 2.69% | 5.79% | $423,700 | $2,043 | 867,788 |
| Columbia, SC | 3.47% | 6.33% | $232,400 | $1,226 | 849,181 |
| Oxnard-Thousand Oaks-Ventura, CA | 1.86% | 3.54% | $822,700 | $2,424 | 837,469 |
| Charleston-North Charleston, SC | 3.78% | 5.99% | $377,500 | $1,884 | 834,267 |
| Cape Coral-Fort Myers, FL | 3.15% | 6.08% | $362,200 | $1,835 | 817,666 |
| Dayton-Kettering-Beavercreek, OH | 3.48% | 7.45% | $201,100 | $1,248 | 816,080 |
| Boise City, ID | 2.29% | 3.94% | $468,900 | $1,540 | 811,115 |
| Stockton-Lodi, CA | 2.47% | 4.56% | $530,700 | $2,015 | 797,334 |
| Lakeland-Winter Haven, FL | 3.84% | 7.24% | $266,500 | $1,608 | 790,694 |
| Greensboro-High Point, NC | 3.47% | 6.60% | $231,000 | $1,271 | 786,419 |
| Colorado Springs, CO | 2.31% | 4.21% | $461,800 | $1,621 | 767,824 |
| Little Rock-North Little Rock-Conway, AR | 3.22% | 6.28% | $214,100 | $1,121 | 758,629 |
| Des Moines-West Des Moines, IA | 2.55% | 6.10% | $267,400 | $1,360 | 731,120 |
| Provo-Orem-Lehi, UT | 1.72% | 3.05% | $535,500 | $1,363 | 717,986 |
| Deltona-Daytona Beach-Ormond Beach, FL | 3.17% | 6.19% | $324,300 | $1,673 | 706,150 |
| Kiryas Joel-Poughkeepsie-Newburgh, NY | 2.38% | 6.50% | $393,600 | $2,131 | 704,836 |
| Akron, OH | 3.31% | 6.94% | $213,000 | $1,231 | 699,820 |
| Madison, WI | 2.03% | 5.04% | $372,400 | $1,565 | 691,830 |
| Winston-Salem, NC | 3.72% | 6.85% | $233,300 | $1,332 | 689,766 |
| Syracuse, NY | 3.99% | 9.55% | $187,700 | $1,493 | 656,410 |
| Ogden, UT | 2.37% | 4.05% | $471,500 | $1,591 | 653,374 |
| Wichita, KS | 2.74% | 6.22% | $201,200 | $1,043 | 652,622 |
| Palm Bay-Melbourne-Titusville, FL | 3.37% | 6.29% | $339,600 | $1,779 | 632,780 |
| Augusta-Richmond County, GA-SC | 3.81% | 7.05% | $226,100 | $1,329 | 624,181 |
| Jackson, MS | 4.08% | 7.71% | $200,500 | $1,289 | 611,324 |
| Harrisburg-Carlisle, PA | 4.03% | 7.58% | $253,100 | $1,598 | 604,155 |
| Toledo, OH | 3.71% | 7.79% | $176,300 | $1,145 | 602,322 |
| Durham-Chapel Hill, NC | 2.83% | 5.29% | $396,100 | $1,745 | 601,724 |
| Spokane-Spokane Valley, WA | 2.28% | 4.42% | $405,300 | $1,494 | 597,123 |
| Fayetteville-Springdale-Rogers, AR | 2.62% | 4.91% | $307,200 | $1,256 | 577,726 |
| Chattanooga, TN-GA | 3.35% | 5.90% | $272,400 | $1,340 | 575,812 |
| New Haven, CT | 3.01% | 7.11% | $353,100 | $2,091 | 570,598 |
Download: cap-rates-by-metro.csv ยท cap-rates-by-metro.json
Cap rates by city for the 100 largest metros
Cap rate estimates run from 1.30% for San Jose up to 4.12% for Greenville, South Carolina. The middle metro's figure sits near 3.1%.
For Indianapolis, the figure is 3.99%; its two-bedroom rent is $1,536 and its median home value is $265,900.
How each cap rate is estimated
- Rent: we take the FY2027 two-bedroom fair market rent from the HUD area that covers most of the metro.
- Price: Census ACS 2020 to 2024 estimates give the median value of owner-occupied homes in the metro.
- Property tax: apply the effective tax rate in the largest county of the metro to that price.
- Insurance: premiums for HO-3 coverage draw on the NAIC average for the state.
- The cap rate tool applies the same default settings: vacancy 5%, capital reserves 5%, repairs 5% and management 8%.
The cap rate equals the NOI from those inputs divided by the median value.
Why these cap rates come out low
A two-bedroom rental is usually smaller than the median home, and that pushes up the price side.
A rental you buy below the median often beats the figure for its metro.
Use the table to rank the metros against each other.
In the analyzer, price a real deal with the rent, tax and insurance costs attached to that deal.