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Akron, OH Cap Rate: 3.64% — Rental Property Analysis

Akron is the cheaper Cleveland-adjacent market — 30 minutes south of downtown Cleveland, anchored by the polymer-and-rubber industrial legacy, and one of the few US metros where the cash-flow math at the median still pencils cleanly. The 3.64% cap rate at a $230,000 median price keeps the 0.54% rent-to-price ratio at or above the 1% rule in many submarkets — Akron remains a genuine cash-flow market. Population growth at -0.2%/yr is essentially flat — Akron has been losing population for two decades.

Employment is anchored by Goodyear Tire & Rubber (HQ — one of the largest US tire manufacturers, with R&D and corporate functions concentrated in Akron), the broader polymer and specialty-chemicals industry (the city retains a meaningful research-and-manufacturing base in polymer science tied to the University of Akron's historic specialty), Summa Health and Akron General hospitals, the University of Akron (mid-size state university with a strong engineering program), FirstEnergy (utility HQ), and the broader Cleveland-metro spillover for retail, services, and professional employment. Submarkets stratify sharply: West Akron (Highland Square, Wallhaven) is the walkable urban-historic zone with gentrifying appreciation; the Merriman Valley and Northwest Akron draw professional family rentals; East Akron and parts of the south side offer deeper-value workforce inventory with the operational complexity that comes with older Class C housing stock; the Cuyahoga Falls / Stow / Hudson suburbs extend the metro economy with better school districts and higher prices.

Ohio property tax at 1.58% is moderate, with Summit County's assessment process producing predictable annual increases. Ohio state income tax is graduated with a top rate near 3.5%. Insurance has tightened across Ohio in recent years — verify per-property quotes before underwriting. The structural advantages: genuine cash-flow math at the median, low cost basis, durable hospital and university employment, and Cleveland-metro economic spillover for tenant demand. The structural risks: population trajectory remains weak, older housing stock requires honest capex assumptions (Akron has more pre-1940 housing than the national average — model 1.5-2% of value annually for capex reserve), and the per-submarket variance is real (some Akron zips are durable, others have significant operational complexity). For local operators or those with genuine local partners, Akron is one of the most cash-flow-friendly metros in the country.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $230,000 median price and $1,240/mo median rent
Est. Cap Rate
3.64%
1% Rule
0.54%
Fails
GRM
15.5x
Price / Income
5.8x

Market Data

Median Home Price$230,000
Median Monthly Rent$1,240
Property Tax Rate1.58%
Population190,469
Population Growth-0.2% / yr
Median Household Income$39,800
Vacancy Rate7%
Annual Appreciation1.9%

2026 Market Update: Akron

Akron's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $230,000, the $1,240/mo rent produces only $697/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.

At current rates, a 20% down conventional loan ($46K at 7%) would result in approximately $-527/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.

Property taxes consume 24% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Akron a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.

Deal Modeling & Scenarios for Akron

All figures below are computed from Akron's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.

Property Tax Bill in Real Dollars

Annual$3,634
Monthly$303
% of Gross Rent24.4%

At 1.58% effective rate on the $230,000 median price, the annual tax bill is $3,634 — that's above national average (+49% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.

5-Year Cap Rate Trajectory

If Akron continues appreciating at 1.9%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:

YearEst. PriceEst. Rent/MoCap Rate
Today$230K$1,2403.6%
Year 1$234K$1,2773.7%
Year 2$239K$1,3163.7%
Year 3$243K$1,3553.8%
Year 4$248K$1,3963.8%
Year 5$253K$1,4373.8%

Three Financing Scenarios

Same median-priced Akron property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.

ScenarioCash InvestedMonthly Cash FlowAnnual CFCash-on-Cash
All cash$230K$697$8,3643.6%
20% down conventional @ 7%$53K$-527$-6,319-11.9%
25% down DSCR @ 8.5%$67K$-629$-7,554-11.3%

Three Price Tiers: Below, At, and Above the Median

Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:

TierPriceRent/MoNOI/YrCap RateMonthly CF
Below median (~75% price)$173K$1,054$6,3233.7%$527
At median$230K$1,240$6,9043.0%$575
Above median (~125% price)$288K$1,426$7,4842.6%$624

Total Return Over a 5-Year Hold

Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Akron's historical appreciation rate of 1.9%:

Cash Flow (5yr)$-31,594
Appreciation$23K
Principal Paydown$14K
Total Return$5K

On a $46K down payment, that's a 10.7% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.

Risk Flags Specific to Akron

Automated checks against the underlying data — surface only the risks that actually apply to Akron, not generic boilerplate:

Watch closelyPopulation is declining at -0.2% per year. Tenant demand erodes over multi-year holds in shrinking metros — underwrite with conservative rent growth (0–1%) and elevated vacancy (8–10%).
Worth notingVacancy at 7% runs slightly above national average. Conservative underwriting (7% vacancy) recommended.
Watch closelyProperty tax rate of 1.58% is among the highest in the country. Taxes consume a meaningful share of gross rent — see the tax breakdown above. Stress-test for assessment increases.
Watch closelyRent-to-price ratio of 0.54% is well below the 1% rule. Achieving positive cash flow at median prices requires below-market purchases, larger down payments, or value-add strategies.

Cap Rate Calculator — Akron

Pre-filled with Akron medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.58% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.87%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,602
net operating income
Gross Rent Multiplier
15.5x
High (>15)
1% Rule
0.54%
✗ Fails
Monthly Cash Flow
$550
before debt service
Annual Breakdown
Gross Rental Income$14,880
Less Vacancy−$1,042
Effective Income$13,838
Less Operating Expenses−$7,236
Net Operating Income$6,602
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Cash-on-Cash Return — Akron

Factor in financing to see your actual return on invested capital in Akron.

$
$57,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.56%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$64,400
$57,500 down + $6,900 closing
Monthly Mortgage
$1,125
on $173K loan
Monthly Cash Flow
$-406
after all expenses
Annual Cash Flow
$-4,867
before taxes
Cash Flow Breakdown
Monthly Rent$1,240
Less Expenses−$521
Less Mortgage−$1,125
Monthly Cash Flow$-406

Is Akron a Good Place to Invest in Rental Property?

Akron, OH has a population of 190,469 and has been growing at -0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $230,000 paired with median rents of $1,240/mo produces an estimated cap rate of 3.64%.

Property taxes at 1.58% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 7% runs above average, which increases cash flow volatility and warrants conservative underwriting.

At a price-to-income ratio of 5.8x, homes cost about 5.8 times the local median income of $39,800. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 1.9% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Akron is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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