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25 Lowest Cap Rate Cities in America (2026)

These cities sit at the bottom of our cap rate rankings — not necessarily bad markets, but ones where rental cash flow is hard to achieve at median prices. Many are appreciation-driven markets where investors accept low current yields in exchange for equity growth.

1
Seattle, WA1.9% cap rate
$750K median$2,400/mo rent1.9% cap rate0.8% growth
2
Frisco, TX2.0% cap rate
$520K median$2,100/mo rent2.0% cap rate4.2% growth
3
Clifton, NJ2.1% cap rate
$420K median$1,850/mo rent2.1% cap rate0.2% growth
4
Bozeman, MT2.1% cap rate
$580K median$1,850/mo rent2.1% cap rate3.5% growth
5
Bend, OR2.2% cap rate
$580K median$1,950/mo rent2.2% cap rate2.5% growth
6
Elizabeth, NJ2.2% cap rate
$380K median$1,720/mo rent2.2% cap rate0.3% growth
7
Newark, NJ2.3% cap rate
$360K median$1,680/mo rent2.3% cap rate0.4% growth
8
Jersey City, NJ2.3% cap rate
$520K median$2,350/mo rent2.3% cap rate0.8% growth
9
Naperville, IL2.3% cap rate
$440K median$1,950/mo rent2.3% cap rate0.5% growth
10
Paterson, NJ2.3% cap rate
$345K median$1,620/mo rent2.3% cap rate0.2% growth
11
Bellingham, WA2.4% cap rate
$520K median$1,850/mo rent2.4% cap rate1% growth
12
Madison, WI2.4% cap rate
$360K median$1,580/mo rent2.4% cap rate1.2% growth
13
Nashua, NH2.4% cap rate
$395K median$1,720/mo rent2.4% cap rate0.6% growth
14
Burlington, VT2.4% cap rate
$420K median$1,750/mo rent2.4% cap rate0.3% growth
15
Manchester, NH2.4% cap rate
$380K median$1,680/mo rent2.4% cap rate0.5% growth
16
Yonkers, NY2.4% cap rate
$480K median$2,050/mo rent2.4% cap rate0.2% growth
17
Oceanside, CA2.4% cap rate
$680K median$2,350/mo rent2.4% cap rate0.8% growth
18
Austin, TX2.5% cap rate
$425K median$1,850/mo rent2.5% cap rate2.8% growth
19
Missoula, MT2.5% cap rate
$450K median$1,580/mo rent2.5% cap rate1.2% growth
20
Concord, NH2.5% cap rate
$340K median$1,520/mo rent2.5% cap rate0.3% growth
21
Portland, OR2.5% cap rate
$480K median$1,780/mo rent2.5% cap rate0.4% growth
22
Stamford, CT2.5% cap rate
$520K median$2,200/mo rent2.5% cap rate0.3% growth
23
Norwalk, CT2.5% cap rate
$480K median$2,050/mo rent2.5% cap rate0.2% growth
24
Plano, TX2.5% cap rate
$420K median$1,900/mo rent2.5% cap rate1.6% growth
25
Round Rock, TX2.6% cap rate
$385K median$1,720/mo rent2.6% cap rate3.1% growth
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