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

5% – 6% Cap Rate Cities

By Jake McEwen · Updated · 85 cities in this tier

Cities with cap rates between 5-6% — solid returns that balance cash flow with market quality and growth potential. We track 85 cities in this range.

Above 8%7% – 8%6% – 7%5% – 6%4% – 5%3% – 4%Below 3%
5.5%
Avg Cap Rate
$208K
Avg Price
$1,322/mo
Avg Rent
85
Cities

Understanding 5% – 6% Cap Rate Markets

Cities in the 5% – 6% cap rate range represent moderate investment opportunities that balance income with market quality. The 85 cities in this tier have an average home price of $208K and average rents of $1,322/mo. Prices are 38% below the national average — lower entry points mean less capital at risk and higher potential yields.

The top performer in this tier is Weirton, WV with a 6.0% cap rate at $125K. The most affordable entry is Johnstown, PA at $115K. For growth, Port St. Lucie, FL leads with 3.5% annual population growth.

Property taxes average 0.93% in this tier, below the 1.08% national average — a cash flow advantage. Vacancy rates average 6%, and population growth averages 0.9% annually. Positive growth supports sustained rental demand and long-term appreciation.

The 5% – 6% 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
5% – 6% (this tier)
85
5.5%
$208K
7% – 8%
16
7.4%
$156K
6% – 7%
42
6.5%
$171K
4% – 5%
157
4.4%
$260K

All 85 Cities (5% – 6%)

1
Weirton, WV6.0% cap rate
$125K median$830/mo rent0.58% tax-0.4% growth
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2
Safford, AZ6.0% cap rate
$295K median$1,920/mo rent0.63% tax1.6% growth
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3
Bay City, MI6.0% cap rate
$175K median$1,280/mo rent1.46% tax0.3% growth
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4
Mount Sterling, KY5.9% cap rate
$190K median$1,260/mo rent0.81% tax0.8% growth
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5
Ardmore, OK5.9% cap rate
$175K median$1,170/mo rent0.88% tax0.9% growth
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6
Jacksonville, TX5.9% cap rate
$225K median$1,670/mo rent1.72% tax1.8% growth
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7
Wichita Falls, TX5.9% cap rate
$170K median$1,260/mo rent1.72% tax1.8% growth
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8
Somerset, KY5.9% cap rate
$170K median$1,120/mo rent0.81% tax0.8% growth
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9
Alamogordo, NM5.8% cap rate
$225K median$1,470/mo rent0.77% tax0.8% growth
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10
Hinesville, GA5.8% cap rate
$255K median$1,710/mo rent0.93% tax0.9% growth
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11
Dothan, AL5.8% cap rate
$190K median$1,190/mo rent0.4% tax0.3% growth
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12
Alexandria, LA5.8% cap rate
$160K median$1,020/mo rent0.54% tax0.3% growth
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13
Marion, OH5.8% cap rate
$170K median$1,240/mo rent1.58% tax0.2% growth
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14
Duluth, MN5.8% cap rate
$250K median$1,680/mo rent1.08% tax0.2% growth
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15
Murray, KY5.8% cap rate
$175K median$1,140/mo rent0.81% tax0.8% growth
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16
Johnstown, PA5.8% cap rate
$115K median$810/mo rent1.38% tax0.2% growth
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17
Palatka, FL5.8% cap rate
$210K median$1,370/mo rent0.86% tax1.9% growth
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18
Martinsville, VA5.8% cap rate
$135K median$880/mo rent0.86% tax0.7% growth
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19
Atchison, KS5.7% cap rate
$175K median$1,220/mo rent1.38% tax0.7% growth
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20
Gulfport, MS5.7% cap rate
$220K median$1,420/mo rent0.68% tax0.5% growth
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21
Rocky Mount, NC5.7% cap rate
$195K median$1,250/mo rent0.78% tax1.5% growth
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22
Owensboro, KY5.7% cap rate
$205K median$1,330/mo rent0.82% tax0.4% growth
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23
Huntington, WV5.7% cap rate
$160K median$1,020/mo rent0.58% tax-0.4% growth
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24
Tupelo, MS5.7% cap rate
$185K median$1,190/mo rent0.66% tax0.2% growth
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25
Albany, GA5.7% cap rate
$160K median$1,050/mo rent0.93% tax0.9% growth
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26
Durant, OK5.7% cap rate
$225K median$1,460/mo rent0.88% tax0.9% growth
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27
Greenwood, SC5.6% cap rate
$170K median$1,050/mo rent0.57% tax1.9% growth
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28
New Orleans, LA5.6% cap rate
$255K median$1,580/mo rent0.55% tax0.4% growth
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29
Albertville, AL5.6% cap rate
$240K median$1,460/mo rent0.42% tax0.8% growth
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30
Bluefield, WV5.6% cap rate
$140K median$880/mo rent0.58% tax-0.4% growth
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31
Columbia, SC5.6% cap rate
$250K median$1,540/mo rent0.56% tax0.8% growth
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32
Cullman, AL5.6% cap rate
$250K median$1,510/mo rent0.42% tax0.8% growth
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33
Fairmont, WV5.6% cap rate
$160K median$1,000/mo rent0.58% tax-0.4% growth
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34
Weatherford, OK5.6% cap rate
$175K median$1,120/mo rent0.88% tax0.9% growth
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35
Punta Gorda, FL5.6% cap rate
$295K median$1,870/mo rent0.86% tax1.9% growth
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36
Wilson, NC5.5% cap rate
$220K median$1,380/mo rent0.78% tax1.5% growth
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37
Kinston, NC5.5% cap rate
$150K median$940/mo rent0.78% tax1.5% growth
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38
Plainview, TX5.5% cap rate
$115K median$820/mo rent1.72% tax1.8% growth
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39
Great Bend, KS5.5% cap rate
$120K median$810/mo rent1.38% tax0.7% growth
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40
Morgantown, WV5.5% cap rate
$215K median$1,330/mo rent0.58% tax-0.4% growth
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41
LaGrange, GA5.5% cap rate
$195K median$1,250/mo rent0.93% tax0.9% growth
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42
Homosassa Springs, FL5.5% cap rate
$270K median$1,690/mo rent0.86% tax1.9% growth
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43
Cranberry Twp, PA5.5% cap rate
$220K median$1,450/mo rent1.32% tax1.5% growth
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44
Beaumont, TX5.5% cap rate
$180K median$1,270/mo rent1.72% tax1.8% growth
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45
Fairbanks, AK5.4% cap rate
$295K median$1,900/mo rent1.04% tax0.1% growth
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46
Batesville, AR5.4% cap rate
$155K median$940/mo rent0.61% tax0.9% growth
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47
Mount Pleasant, TX5.4% cap rate
$215K median$1,510/mo rent1.72% tax1.8% growth
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48
Bartlesville, OK5.4% cap rate
$180K median$1,130/mo rent0.88% tax0.9% growth
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49
Lakeland, FL5.4% cap rate
$295K median$1,830/mo rent0.86% tax2.1% growth
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50
Starkville, MS5.4% cap rate
$245K median$1,510/mo rent0.66% tax0.2% growth
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51
Blacksburg, VA5.4% cap rate
$280K median$1,730/mo rent0.86% tax0.7% growth
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52
Cumberland, MD5.4% cap rate
$160K median$1,020/mo rent1.04% tax0.5% growth
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53
Warner Robins, GA5.4% cap rate
$250K median$1,570/mo rent0.92% tax1% growth
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54
Lufkin, TX5.4% cap rate
$195K median$1,360/mo rent1.72% tax1.8% growth
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55
Salem, OH5.3% cap rate
$155K median$1,070/mo rent1.58% tax0.2% growth
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56
Martin, TN5.3% cap rate
$180K median$1,080/mo rent0.65% tax1.6% growth
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57
Brownsville, TX5.3% cap rate
$205K median$1,420/mo rent1.64% tax0.8% growth
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58
Valdosta, GA5.3% cap rate
$220K median$1,380/mo rent0.93% tax0.9% growth
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59
Hattiesburg, MS5.3% cap rate
$210K median$1,280/mo rent0.66% tax0.4% growth
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60
New Bern, NC5.3% cap rate
$255K median$1,550/mo rent0.78% tax1.5% growth
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61
Hammond, LA5.3% cap rate
$220K median$1,310/mo rent0.54% tax0.3% growth
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62
Macon, GA5.3% cap rate
$190K median$1,210/mo rent0.96% tax0.2% growth
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63
Henderson, NC5.3% cap rate
$180K median$1,090/mo rent0.78% tax1.5% growth
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64
Dublin, GA5.3% cap rate
$165K median$1,030/mo rent0.93% tax0.9% growth
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65
South Bend, IN5.3% cap rate
$225K median$1,390/mo rent0.86% tax0.3% growth
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66
Pittsburgh, PA5.3% cap rate
$220K median$1,450/mo rent1.36% tax0.2% growth
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67
Lake Charles, LA5.3% cap rate
$195K median$1,150/mo rent0.54% tax0.4% growth
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68
Terre Haute, IN5.2% cap rate
$160K median$970/mo rent0.84% tax0.9% growth
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69
Port St. Lucie, FL5.2% cap rate
$380K median$2,300/mo rent0.91% tax3.5% growth
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70
Jacksonville, IL5.2% cap rate
$125K median$890/mo rent2.06% tax0.2% growth
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71
Sanford, NC5.2% cap rate
$290K median$1,720/mo rent0.78% tax1.5% growth
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72
Oxford, MS5.2% cap rate
$395K median$2,350/mo rent0.66% tax0.2% growth
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73
Binghamton, NY5.1% cap rate
$185K median$1,270/mo rent1.72% tax-0.3% growth
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74
Hoover, AL5.1% cap rate
$255K median$1,410/mo rent0.41% tax1.2% growth
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75
Shawnee, OK5.1% cap rate
$190K median$1,140/mo rent0.88% tax0.9% growth
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76
Muncie, IN5.1% cap rate
$165K median$980/mo rent0.84% tax0.9% growth
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77
Ocala, FL5.1% cap rate
$270K median$1,600/mo rent0.82% tax2.4% growth
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78
Marion, IN5.1% cap rate
$145K median$860/mo rent0.84% tax0.9% growth
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79
Shelby, NC5.1% cap rate
$210K median$1,230/mo rent0.78% tax1.5% growth
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80
Susanville, CA5.1% cap rate
$225K median$1,310/mo rent0.75% tax0.8% growth
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81
Dalton, GA5.1% cap rate
$245K median$1,480/mo rent0.93% tax0.9% growth
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82
Florence, AL5.0% cap rate
$210K median$1,170/mo rent0.42% tax0.8% growth
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83
Lubbock, TX5.0% cap rate
$210K median$1,390/mo rent1.65% tax1.1% growth
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84
Kingsport, TN5.0% cap rate
$240K median$1,370/mo rent0.65% tax1.6% growth
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85
Sebastian, FL5.0% cap rate
$360K median$2,110/mo rent0.86% tax1.9% growth
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By Region

South (66)
Midwest (11)
Northeast (4)
West (4)

5% – 6% Cities by State

Texas (8)Georgia (8)Florida (7)North Carolina (7)West Virginia (5)Oklahoma (5)Alabama (5)Mississippi (5)Kentucky (4)Louisiana (4)Indiana (4)Pennsylvania (3)Ohio (2)Virginia (2)Kansas (2)South Carolina (2)Tennessee (2)Arizona (1)Michigan (1)New Mexico (1)Minnesota (1)Alaska (1)Arkansas (1)Maryland (1)Illinois (1)New York (1)California (1)

Frequently Asked Questions

What does a 5% – 6% cap rate mean?
A cap rate 5% – 6% 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 5% – 6% cap rate cities a good investment?
The 5% – 6% range is often considered the sweet spot for balanced investors. These 85 cities offer moderate cash flow with more market stability than higher-yield alternatives. Growth averages 0.9%/yr, supporting long-term returns.
How many US cities have 5% – 6% cap rates?
CapRateCity tracks 85 US cities with cap rates in the 5% – 6% range. The South has the most cities in this tier (66), followed by the Midwest (11). Texas leads with 8 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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