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CapRateCity
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Best Rental Property Cities Under $100K (2026)

Sub-$100K markets are rare and come with both opportunity and risk. The cap rates can be extraordinary, but due diligence is critical — check population trends, employment base, and neighborhood-level data before committing. Here are the cities in our database that fall below this threshold.

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7.2%
Avg Cap Rate
$95K
Avg Price
$850/mo
Avg Rent
1
Cities

Key Takeaways

These 1 cities represent the top-performing markets based on cap rate. Danville, IL leads the ranking with 7.2% cap rate at a $95K median price.

Across this ranking, the average cap rate is 7.24% (vs 3.81% nationally), average prices are $95K (vs $333K nationally), and average rents are $850/mo. Prices in this ranking are 72% below the national average — lower barriers to entry for new investors.

Geographic distribution: the Midwest (1 cities). The Midwest dominates this ranking — investors in other regions may need to look at out-of-state investing.

1
Danville, IL7.2% cap rate
$95K median$850/mo rent7.2% cap rate0.2% growth
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Frequently Asked Questions

How is this ranking calculated?
This ranking is based on cap rate 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?
Danville, IL tops this ranking with 7.2% cap rate. With a median home price of $95K and rent of $850/mo, it offers strong cash flow fundamentals. Visit the Danville page for a full analysis with interactive calculators.
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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