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CapRateCity
Free cap rate calculators for every US market
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Cities That Pass the 1% Rule (2026)

The 1% rule says monthly rent should be at least 1% of the purchase price — a $200K home should rent for $2,000+/mo. It's a simple but powerful screen: properties that pass almost always cash flow. Here are all the cities in our database that pass at the median level.

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Avg Cap Rate
$0
Avg Price
$0/mo
Avg Rent
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Cities

Key Takeaways

These 0 cities represent the top-performing markets based on rent/price.

Across this ranking, the average cap rate is 0.00% (vs 3.81% nationally), average prices are $0 (vs $333K nationally), and average rents are $0/mo. Prices in this ranking are 100% below the national average — lower barriers to entry for new investors.

No cities match these criteria.
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Frequently Asked Questions

How is this ranking calculated?
This ranking is based on rent/price calculated from median home prices, rents, property taxes, insurance, maintenance, and vacancy rates for each city. We track 300+ US markets and rank them using publicly available housing data. Cap rate = Net Operating Income / Purchase Price. All calculations assume standard expense ratios and can be customized on each city's page.
Which city ranks #1?
See the list above for the current #1.
Should I invest in the #1 ranked city?
Not necessarily. Rankings show which cities have the strongest metrics, but the best investment depends on your strategy, budget, risk tolerance, and whether you're investing locally or remotely. A city that ranks #1 on cap rate might have slower growth or higher management challenges. Use this ranking as a starting point, then dive into individual city pages to model specific deals.
How often is this data updated?
Our data reflects 2026 estimates based on the latest available median prices, rents, and economic indicators. Market conditions change — use the interactive calculators on each city page to input current asking prices and rents for any property you're evaluating. The rankings are recalculated with each site update.

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