CapRateCity · Vol. II No. 32Established 2025775 US Markets Tracked
CapRateCity
An independent investor's notebook on US rental markets.

Browse Cities by Cap Rate

Explore 300+ US rental markets organized by cap rate range. Higher cap rates mean more income per dollar invested — but often come with more risk.

Above 8% Cap Rate5 cities
Cities with cap rates above 8% — the highest-yield markets in America. These offer exceptional unleveraged returns but may carry higher risk.
7% – 8% Cap Rate16 cities
Cities with cap rates between 7-8% — excellent returns with slightly more market stability than the highest-yield tier.
6% – 7% Cap Rate42 cities
Cities with cap rates between 6-7% — strong investment fundamentals. This range is often considered the sweet spot for cash flow investors.
5% – 6% Cap Rate85 cities
Cities with cap rates between 5-6% — solid returns that balance cash flow with market quality and growth potential.
4% – 5% Cap Rate157 cities
Cities with cap rates between 4-5% — moderate returns. Deals here need careful sourcing; value-add strategies often outperform buy-and-hold.
3% – 4% Cap Rate227 cities
Cities with cap rates between 3-4% — lower cash flow markets that typically compensate with stronger appreciation and tenant quality.
Below 3% Cap Rate243 cities
Cities with cap rates below 3% — appreciation-driven markets where cash flow is difficult at median prices.
The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.