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

4% – 5% Cap Rate Cities

By Jake McEwen · Updated · 157 cities in this tier

Cities with cap rates between 4-5% — moderate returns. Deals here need careful sourcing; value-add strategies often outperform buy-and-hold. We track 157 cities in this range.

Above 8%7% – 8%6% – 7%5% – 6%4% – 5%3% – 4%Below 3%
4.5%
Avg Cap Rate
$260K
Avg Price
$1,437/mo
Avg Rent
157
Cities

Understanding 4% – 5% Cap Rate Markets

Cities in the 4% – 5% cap rate range represent moderate investment opportunities that balance income with market quality. The 157 cities in this tier have an average home price of $260K and average rents of $1,437/mo. Prices are 22% below the national average — lower entry points mean less capital at risk and higher potential yields.

The top performer in this tier is Tahlequah, OK with a 5.0% cap rate at $205K. The most affordable entry is Burlington, IA at $140K. For growth, Myrtle Beach, SC leads with 3.8% annual population growth.

Property taxes average 1.07% in this tier, below the 1.08% national average — a cash flow advantage. Vacancy rates average 5.8%, and population growth averages 0.86% annually. Positive growth supports sustained rental demand and long-term appreciation.

The 4% – 5% range is where many successful investors operate — returns are solid enough to cash flow with leverage while markets are stable enough for long-term holds. Look for cities with above-average growth in this tier for the best total returns.

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How This Tier Compares

Tier
Cities
Avg Cap Rate
Avg Price
4% – 5% (this tier)
157
4.5%
$260K
6% – 7%
42
6.5%
$171K
5% – 6%
85
5.5%
$208K
3% – 4%
227
3.4%
$332K

All 157 Cities (4% – 5%)

1
Tahlequah, OK5.0% cap rate
$205K median$1,210/mo rent0.88% tax0.9% growth
→
2
Columbus, GA5.0% cap rate
$205K median$1,230/mo rent0.91% tax0.4% growth
→
3
Amsterdam, NY5.0% cap rate
$200K median$1,330/mo rent1.71% tax0% growth
→
4
Marion, NC5.0% cap rate
$250K median$1,440/mo rent0.78% tax1.5% growth
→
5
Baton Rouge, LA5.0% cap rate
$240K median$1,350/mo rent0.56% tax0.5% growth
→
6
Birmingham, AL5.0% cap rate
$255K median$1,410/mo rent0.42% tax0.3% growth
→
7
Elizabeth City, NC4.9% cap rate
$260K median$1,490/mo rent0.78% tax1.5% growth
→
8
Battle Creek, MI4.9% cap rate
$180K median$1,150/mo rent1.46% tax0.3% growth
→
9
Marquette, MI4.9% cap rate
$235K median$1,500/mo rent1.46% tax0.3% growth
→
10
Fayetteville, NC4.9% cap rate
$255K median$1,480/mo rent0.79% tax0.8% growth
→
11
Lima, OH4.9% cap rate
$180K median$1,170/mo rent1.58% tax0.2% growth
→
12
Sandusky, OH4.9% cap rate
$230K median$1,490/mo rent1.58% tax0.2% growth
→
13
Gaffney, SC4.9% cap rate
$180K median$990/mo rent0.57% tax1.9% growth
→
14
Lake City, FL4.9% cap rate
$265K median$1,520/mo rent0.86% tax1.9% growth
→
15
Peoria, IL4.9% cap rate
$165K median$1,150/mo rent2.1% tax-0.3% growth
→
16
Calhoun, GA4.9% cap rate
$275K median$1,610/mo rent0.93% tax0.9% growth
→
17
Greenville, NC4.9% cap rate
$240K median$1,360/mo rent0.78% tax1.5% growth
→
18
Anniston, AL4.9% cap rate
$170K median$920/mo rent0.42% tax0.8% growth
→
19
Oneonta, NY4.9% cap rate
$200K median$1,310/mo rent1.71% tax0% growth
→
20
Texarkana, TX4.8% cap rate
$175K median$1,140/mo rent1.72% tax1.8% growth
→
21
Augusta, GA4.8% cap rate
$245K median$1,440/mo rent0.94% tax0.5% growth
→
22
El Campo, TX4.8% cap rate
$240K median$1,560/mo rent1.72% tax1.8% growth
→
23
Del Rio, TX4.8% cap rate
$205K median$1,330/mo rent1.72% tax1.8% growth
→
24
Paragould, AR4.8% cap rate
$185K median$1,020/mo rent0.61% tax0.9% growth
→
25
Parkersburg, WV4.8% cap rate
$165K median$920/mo rent0.58% tax-0.4% growth
→
26
Pensacola, FL4.8% cap rate
$305K median$1,720/mo rent0.79% tax1% growth
→
27
Midland, MI4.8% cap rate
$235K median$1,470/mo rent1.46% tax0.3% growth
→
28
East Stroudsburg, PA4.8% cap rate
$300K median$1,850/mo rent1.38% tax0.2% growth
→
29
Saginaw, MI4.8% cap rate
$160K median$1,000/mo rent1.46% tax0.3% growth
→
30
Salina, KS4.8% cap rate
$175K median$1,070/mo rent1.38% tax0.7% growth
→
31
Norman, OK4.8% cap rate
$240K median$1,360/mo rent0.86% tax1% growth
→
32
Branson, MO4.8% cap rate
$245K median$1,480/mo rent1.25% tax0.5% growth
→
33
Corpus Christi, TX4.8% cap rate
$220K median$1,420/mo rent1.68% tax0.8% growth
→
34
Odessa, TX4.8% cap rate
$250K median$1,610/mo rent1.72% tax1.8% growth
→
35
St. Petersburg, FL4.8% cap rate
$355K median$1,980/mo rent0.82% tax1.4% growth
→
36
Cambridge, OH4.8% cap rate
$160K median$1,020/mo rent1.58% tax0.2% growth
→
37
Fort Lauderdale, FL4.8% cap rate
$470K median$2,650/mo rent0.88% tax1.1% growth
→
38
Tampa, FL4.7% cap rate
$355K median$1,980/mo rent0.83% tax1.9% growth
→
39
Miami, FL4.7% cap rate
$470K median$2,650/mo rent0.89% tax1.2% growth
→
40
Burlington, IA4.7% cap rate
$140K median$870/mo rent1.51% tax0.4% growth
→
41
Paris, TX4.7% cap rate
$200K median$1,280/mo rent1.72% tax1.8% growth
→
42
El Paso, TX4.7% cap rate
$225K median$1,450/mo rent1.74% tax0.6% growth
→
43
Cortland, NY4.7% cap rate
$190K median$1,220/mo rent1.71% tax0% growth
→
44
Cookeville, TN4.7% cap rate
$285K median$1,550/mo rent0.65% tax1.6% growth
→
45
Danville, KY4.7% cap rate
$210K median$1,170/mo rent0.81% tax0.8% growth
→
46
Syracuse, NY4.7% cap rate
$250K median$1,620/mo rent1.75% tax-0.2% growth
→
47
Oklahoma City, OK4.7% cap rate
$240K median$1,360/mo rent0.88% tax1% growth
→
48
Stillwater, OK4.7% cap rate
$235K median$1,320/mo rent0.88% tax0.9% growth
→
49
Dyersburg, TN4.7% cap rate
$165K median$890/mo rent0.65% tax1.6% growth
→
50
Palm Bay, FL4.6% cap rate
$340K median$1,890/mo rent0.88% tax2.2% growth
→
51
Lexington, NE4.6% cap rate
$205K median$1,270/mo rent1.62% tax0.7% growth
→
52
Little Rock, AR4.6% cap rate
$225K median$1,210/mo rent0.62% tax0.5% growth
→
53
Daytona Beach, FL4.6% cap rate
$325K median$1,790/mo rent0.84% tax1.5% growth
→
54
Ada, OK4.6% cap rate
$180K median$1,000/mo rent0.88% tax0.9% growth
→
55
Youngstown, OH4.6% cap rate
$165K median$1,050/mo rent1.6% tax-0.5% growth
→
56
Deltona, FL4.6% cap rate
$325K median$1,790/mo rent0.87% tax2% growth
→
57
Winston, NC4.6% cap rate
$275K median$1,490/mo rent0.78% tax1.5% growth
→
58
Georgetown, SC4.6% cap rate
$380K median$1,990/mo rent0.57% tax1.9% growth
→
59
Bangor, ME4.6% cap rate
$265K median$1,560/mo rent1.32% tax0.2% growth
→
60
Broken Arrow, OK4.6% cap rate
$245K median$1,340/mo rent0.88% tax1.2% growth
→
61
Kokomo, IN4.6% cap rate
$185K median$1,010/mo rent0.84% tax0.9% growth
→
62
Sierra Vista, AZ4.5% cap rate
$260K median$1,360/mo rent0.63% tax1.6% growth
→
63
Hot Springs, AR4.5% cap rate
$240K median$1,260/mo rent0.61% tax0.9% growth
→
64
Gainesville, FL4.5% cap rate
$300K median$1,630/mo rent0.85% tax1.3% growth
→
65
Greensboro, NC4.5% cap rate
$260K median$1,410/mo rent0.82% tax0.9% growth
→
66
Winston-Salem, NC4.5% cap rate
$275K median$1,490/mo rent0.81% tax0.7% growth
→
67
Hickory, NC4.5% cap rate
$260K median$1,390/mo rent0.78% tax1.5% growth
→
68
Kankakee, IL4.5% cap rate
$215K median$1,400/mo rent2.06% tax0.2% growth
→
69
Cape Coral, FL4.5% cap rate
$340K median$1,840/mo rent0.87% tax3.2% growth
→
70
Tallahassee, FL4.5% cap rate
$275K median$1,490/mo rent0.84% tax0.9% growth
→
71
High Point, NC4.5% cap rate
$260K median$1,410/mo rent0.82% tax0.6% growth
→
72
Payson, AZ4.5% cap rate
$380K median$1,970/mo rent0.63% tax1.6% growth
→
73
Statesboro, GA4.5% cap rate
$280K median$1,540/mo rent0.93% tax0.9% growth
→
74
Laredo, TX4.5% cap rate
$215K median$1,330/mo rent1.7% tax1% growth
→
75
Tulsa, OK4.4% cap rate
$245K median$1,340/mo rent0.9% tax0.6% growth
→
76
Spartanburg, SC4.4% cap rate
$275K median$1,420/mo rent0.57% tax0.8% growth
→
77
Bemidji, MN4.4% cap rate
$255K median$1,420/mo rent1.12% tax0.5% growth
→
78
DeRidder, LA4.4% cap rate
$190K median$980/mo rent0.54% tax0.3% growth
→
79
Greenville, SC4.4% cap rate
$305K median$1,550/mo rent0.55% tax1.6% growth
→
80
Kenosha, WI4.4% cap rate
$340K median$2,130/mo rent1.88% tax0.4% growth
→
81
Utica, NY4.4% cap rate
$215K median$1,340/mo rent1.74% tax-0.2% growth
→
82
Madera, CA4.4% cap rate
$420K median$2,200/mo rent0.75% tax0.8% growth
→
83
Seymour, IN4.4% cap rate
$225K median$1,200/mo rent0.84% tax0.9% growth
→
84
Morristown, TN4.4% cap rate
$290K median$1,500/mo rent0.65% tax1.6% growth
→
85
Naperville, IL4.4% cap rate
$340K median$2,130/mo rent2% tax0.5% growth
→
86
Carmel, IN4.4% cap rate
$285K median$1,490/mo rent0.82% tax1.8% growth
→
87
Fishers, IN4.4% cap rate
$285K median$1,490/mo rent0.84% tax2.2% growth
→
88
Farmington, NM4.4% cap rate
$265K median$1,390/mo rent0.77% tax0.8% growth
→
89
Scranton, PA4.4% cap rate
$220K median$1,300/mo rent1.44% tax-0.2% growth
→
90
Clearlake, CA4.3% cap rate
$305K median$1,580/mo rent0.75% tax0.8% growth
→
91
Toledo, OH4.3% cap rate
$190K median$1,160/mo rent1.65% tax-0.3% growth
→
92
Milledgeville, GA4.3% cap rate
$225K median$1,210/mo rent0.93% tax0.9% growth
→
93
Sarasota, FL4.3% cap rate
$400K median$2,090/mo rent0.86% tax1.8% growth
→
94
Decatur, AL4.3% cap rate
$225K median$1,110/mo rent0.42% tax0.8% growth
→
95
Waterbury, CT4.3% cap rate
$195K median$1,180/mo rent1.7% tax-0.1% growth
→
96
Lawrenceburg, TN4.3% cap rate
$240K median$1,220/mo rent0.65% tax1.6% growth
→
97
Shelbyville, TN4.3% cap rate
$325K median$1,650/mo rent0.65% tax1.6% growth
→
98
Myrtle Beach, SC4.3% cap rate
$335K median$1,680/mo rent0.58% tax3.8% growth
→
99
North Port, FL4.3% cap rate
$400K median$2,090/mo rent0.86% tax1.9% growth
→
100
Johnson City, TN4.3% cap rate
$270K median$1,330/mo rent0.52% tax1% growth
→
101
Memphis, TN4.3% cap rate
$240K median$1,420/mo rent1.48% tax0.3% growth
→
102
Forest City, NC4.3% cap rate
$210K median$1,080/mo rent0.78% tax1.5% growth
→
103
Sterling, CO4.3% cap rate
$250K median$1,220/mo rent0.51% tax1.3% growth
→
104
Joplin, MO4.3% cap rate
$220K median$1,230/mo rent1.25% tax0.5% growth
→
105
Aurora, IL4.3% cap rate
$340K median$2,130/mo rent2.05% tax0.3% growth
→
106
Fort Smith, AR4.2% cap rate
$200K median$1,010/mo rent0.6% tax0.3% growth
→
107
Coos Bay, OR4.2% cap rate
$340K median$1,780/mo rent0.94% tax1% growth
→
108
Wilmington, DE4.2% cap rate
$375K median$1,860/mo rent0.56% tax0.2% growth
→
109
Jacksonville, NC4.2% cap rate
$285K median$1,480/mo rent0.78% tax1.2% growth
→
110
Indianapolis, IN4.2% cap rate
$285K median$1,490/mo rent0.84% tax0.9% growth
→
111
Watertown, NY4.2% cap rate
$215K median$1,290/mo rent1.71% tax0% growth
→
112
Amarillo, TX4.2% cap rate
$210K median$1,240/mo rent1.62% tax0.7% growth
→
113
Joliet, IL4.2% cap rate
$340K median$2,130/mo rent2.06% tax0.4% growth
→
114
Seneca, SC4.2% cap rate
$280K median$1,380/mo rent0.57% tax1.9% growth
→
115
Connersville, IN4.2% cap rate
$155K median$800/mo rent0.84% tax0.9% growth
→
116
Mountain Home, ID4.2% cap rate
$350K median$1,720/mo rent0.64% tax2.6% growth
→
117
Ashtabula, OH4.2% cap rate
$170K median$1,000/mo rent1.58% tax0.2% growth
→
118
Chicago, IL4.2% cap rate
$340K median$2,130/mo rent2.08% tax0.1% growth
→
119
Auburn, AL4.2% cap rate
$340K median$1,640/mo rent0.42% tax0.8% growth
→
120
Altoona, PA4.2% cap rate
$170K median$960/mo rent1.38% tax0.2% growth
→
121
Yuma, AZ4.2% cap rate
$280K median$1,380/mo rent0.63% tax1.6% growth
→
122
Jefferson, GA4.2% cap rate
$400K median$2,100/mo rent0.93% tax0.9% growth
→
123
Bloomington, IN4.2% cap rate
$290K median$1,480/mo rent0.83% tax0.8% growth
→
124
Sterling Heights, MI4.2% cap rate
$260K median$1,460/mo rent1.4% tax0.2% growth
→
125
Knoxville, TN4.2% cap rate
$355K median$1,720/mo rent0.55% tax1.2% growth
→
126
Searcy, AR4.1% cap rate
$205K median$1,010/mo rent0.61% tax0.9% growth
→
127
Albemarle, NC4.1% cap rate
$300K median$1,510/mo rent0.78% tax1.5% growth
→
128
Richmond, IN4.1% cap rate
$165K median$840/mo rent0.84% tax0.9% growth
→
129
Ruston, LA4.1% cap rate
$215K median$1,050/mo rent0.54% tax0.3% growth
→
130
Taos, NM4.1% cap rate
$430K median$2,160/mo rent0.77% tax0.8% growth
→
131
Elizabethtown, KY4.1% cap rate
$245K median$1,240/mo rent0.81% tax0.8% growth
→
132
Sunbury, PA4.1% cap rate
$165K median$920/mo rent1.38% tax0.2% growth
→
133
Brunswick, GA4.1% cap rate
$320K median$1,660/mo rent0.93% tax0.9% growth
→
134
Hutchinson, KS4.1% cap rate
$150K median$830/mo rent1.38% tax0.7% growth
→
135
Warren, MI4.1% cap rate
$260K median$1,460/mo rent1.44% tax0.1% growth
→
136
Mountain Home, AR4.1% cap rate
$230K median$1,120/mo rent0.61% tax0.9% growth
→
137
Indiana, PA4.1% cap rate
$155K median$860/mo rent1.38% tax0.2% growth
→
138
Savannah, GA4.1% cap rate
$345K median$1,780/mo rent0.96% tax1.2% growth
→
139
Chattanooga, TN4.1% cap rate
$315K median$1,500/mo rent0.54% tax1% growth
→
140
Lafayette, IN4.1% cap rate
$275K median$1,390/mo rent0.85% tax0.6% growth
→
141
Flint, MI4.1% cap rate
$185K median$1,070/mo rent1.52% tax-0.5% growth
→
142
Springfield, OH4.1% cap rate
$195K median$1,120/mo rent1.58% tax0.2% growth
→
143
Rome, GA4.0% cap rate
$230K median$1,180/mo rent0.93% tax0.9% growth
→
144
Hanford, CA4.0% cap rate
$360K median$1,770/mo rent0.75% tax0.8% growth
→
145
Hilo, HI4.0% cap rate
$560K median$2,490/mo rent0.28% tax0.2% growth
→
146
Columbus, IN4.0% cap rate
$270K median$1,350/mo rent0.84% tax0.9% growth
→
147
Waterloo, IA4.0% cap rate
$195K median$1,100/mo rent1.5% tax0% growth
→
148
Springfield, IL4.0% cap rate
$190K median$1,170/mo rent2.08% tax0.1% growth
→
149
Kirksville, MO4.0% cap rate
$180K median$970/mo rent1.25% tax0.5% growth
→
150
Harrisonburg, VA4.0% cap rate
$340K median$1,700/mo rent0.86% tax0.7% growth
→
151
Topeka, KS4.0% cap rate
$210K median$1,160/mo rent1.39% tax0.2% growth
→
152
Columbus, NE4.0% cap rate
$270K median$1,530/mo rent1.62% tax0.7% growth
→
153
McAllen, TX4.0% cap rate
$190K median$1,100/mo rent1.72% tax1.8% growth
→
154
Virginia Beach, VA4.0% cap rate
$365K median$1,790/mo rent0.79% tax0.8% growth
→
155
Cleveland, OH4.0% cap rate
$240K median$1,390/mo rent1.63% tax-0.1% growth
→
156
Bakersfield, CA4.0% cap rate
$360K median$1,760/mo rent0.72% tax0.9% growth
→
157
Ithaca, NY4.0% cap rate
$340K median$1,970/mo rent1.71% tax0% growth
→

By Region

South (85)
Midwest (44)
Northeast (15)
West (13)

4% – 5% Cities by State

Florida (14)North Carolina (12)Texas (10)Indiana (10)Georgia (9)Tennessee (9)Ohio (8)Oklahoma (7)New York (7)Michigan (7)Illinois (7)South Carolina (6)Arkansas (6)Pennsylvania (5)Alabama (4)California (4)Louisiana (3)Kansas (3)Missouri (3)Arizona (3)Iowa (2)Kentucky (2)Nebraska (2)New Mexico (2)Virginia (2)West Virginia (1)Maine (1)Minnesota (1)Wisconsin (1)Connecticut (1)Colorado (1)Oregon (1)Delaware (1)Idaho (1)Hawaii (1)

Frequently Asked Questions

What does a 4% – 5% cap rate mean?
A cap rate 4% – 5% means the property generates moderate income relative to its price. At this level, properties can cash flow with standard financing but won't have the wide margins of higher-yield markets.
Are 4% – 5% cap rate cities a good investment?
The 4% – 5% range is often considered the sweet spot for balanced investors. These 157 cities offer moderate cash flow with more market stability than higher-yield alternatives. Growth averages 0.86%/yr, supporting long-term returns.
How many US cities have 4% – 5% cap rates?
CapRateCity tracks 157 US cities with cap rates in the 4% – 5% range. The South has the most cities in this tier (85), followed by the Midwest (44). Florida leads with 14 cities.
What is a good cap rate for rental property?
It depends on your strategy. Above 6% is generally considered strong for cash flow. 4-6% is moderate and workable with good financing. Below 4% is challenging for cash flow but may offer superior appreciation. The national average across 300+ cities we track is 3.81%. The "best" cap rate balances yield with market quality, growth, and risk.

Related Rankings

Highest Cap Rate Cities →Best Cash Flow Cities →Cheapest Rental Markets →Fastest Growing Markets →Lowest Property Tax Cities →Best BRRRR Cities →
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