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6% – 7% Cap Rate Cities

Cities with cap rates between 6-7% — strong investment fundamentals. This range is often considered the sweet spot for cash flow investors. We track 42 cities in this range.

Above 8%7% – 8%6% – 7%5% – 6%4% – 5%3% – 4%Below 3%
6.5%
Avg Cap Rate
$171K
Avg Price
$1,231/mo
Avg Rent
42
Cities

Understanding 6% – 7% Cap Rate Markets

Cities in the 6% – 7% cap rate range represent some of the strongest cash flow markets in America. The 42 cities in this tier have an average home price of $171K and average rents of $1,231/mo. Prices are 49% below the national average — lower entry points mean less capital at risk and higher potential yields.

The top performer in this tier is Ponca City, OK with a 7.0% cap rate at $110K. For growth, Florence, SC leads with 1.9% annual population growth.

Property taxes average 0.87% in this tier, below the 1.08% national average — a cash flow advantage. Vacancy rates average 6.3%, and population growth averages 0.53% annually. Moderate growth provides demand stability.

Markets in the 6% – 7% range offer compelling cash flow, but higher yields often correlate with slower growth or higher risk. The best approach is to cross-reference cap rate with population growth, vacancy, and local economic drivers.

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How This Tier Compares

Tier
Cities
Avg Cap Rate
Avg Price
6% – 7% (this tier)
42
6.5%
$171K
Above 8%
5
8.6%
$135K
7% – 8%
16
7.4%
$156K
5% – 6%
85
5.5%
$208K

All 42 Cities (6% – 7%)

1
Ponca City, OK7.0% cap rate
$110K median$840/mo rent0.88% tax0.9% growth
2
Beckley, WV6.9% cap rate
$140K median$1,050/mo rent0.58% tax-0.4% growth
3
Duncan, OK6.9% cap rate
$135K median$1,030/mo rent0.88% tax0.9% growth
4
Troy, AL6.9% cap rate
$160K median$1,160/mo rent0.42% tax0.8% growth
5
Shreveport, LA6.9% cap rate
$175K median$1,300/mo rent0.54% tax-0.3% growth
6
McAlester, OK6.9% cap rate
$140K median$1,060/mo rent0.88% tax0.9% growth
7
Columbus, MS6.8% cap rate
$180K median$1,340/mo rent0.66% tax0.2% growth
8
Charleston, WV6.8% cap rate
$140K median$1,030/mo rent0.58% tax-0.4% growth
9
Carlsbad, NM6.7% cap rate
$240K median$1,760/mo rent0.77% tax0.8% growth
10
Tuscaloosa, AL6.7% cap rate
$215K median$1,520/mo rent0.43% tax0.8% growth
11
Roswell, NM6.7% cap rate
$170K median$1,240/mo rent0.77% tax0.8% growth
12
Lawton, OK6.7% cap rate
$150K median$1,110/mo rent0.88% tax0.9% growth
13
London, KY6.6% cap rate
$155K median$1,130/mo rent0.81% tax0.8% growth
14
Elmira, NY6.6% cap rate
$150K median$1,220/mo rent1.71% tax0% growth
15
Florence, SC6.6% cap rate
$185K median$1,300/mo rent0.57% tax1.9% growth
16
Opelousas, LA6.6% cap rate
$130K median$920/mo rent0.54% tax0.3% growth
17
Clewiston, FL6.6% cap rate
$275K median$1,990/mo rent0.86% tax1.9% growth
18
Paducah, KY6.5% cap rate
$170K median$1,220/mo rent0.81% tax0.8% growth
19
Danville, VA6.5% cap rate
$160K median$1,150/mo rent0.86% tax0.7% growth
20
Tifton, GA6.5% cap rate
$200K median$1,460/mo rent0.93% tax0.9% growth
21
Corning, NY6.5% cap rate
$160K median$1,280/mo rent1.71% tax0% growth
22
Olean, NY6.5% cap rate
$155K median$1,240/mo rent1.71% tax0% growth
23
Sumter, SC6.4% cap rate
$205K median$1,410/mo rent0.57% tax1.9% growth
24
Norwalk, OH6.4% cap rate
$185K median$1,450/mo rent1.58% tax0.2% growth
25
Waycross, GA6.4% cap rate
$165K median$1,190/mo rent0.93% tax0.9% growth
26
Monroe, LA6.4% cap rate
$160K median$1,100/mo rent0.54% tax0.3% growth
27
Lafayette, LA6.3% cap rate
$195K median$1,330/mo rent0.52% tax0.6% growth
28
Jackson, MS6.3% cap rate
$210K median$1,480/mo rent0.65% tax-0.2% growth
29
Montgomery, AL6.3% cap rate
$205K median$1,380/mo rent0.41% tax0.2% growth
30
Jackson, TN6.3% cap rate
$200K median$1,360/mo rent0.56% tax0.4% growth
31
Pottsville, PA6.3% cap rate
$155K median$1,160/mo rent1.38% tax0.2% growth
32
Ogdensburg, NY6.2% cap rate
$135K median$1,050/mo rent1.71% tax0% growth
33
Mobile, AL6.2% cap rate
$190K median$1,270/mo rent0.44% tax0.1% growth
34
Clarksburg, WV6.2% cap rate
$150K median$1,020/mo rent0.58% tax-0.4% growth
35
Hobbs, NM6.2% cap rate
$195K median$1,330/mo rent0.77% tax0.8% growth
36
Jonesboro, AR6.1% cap rate
$200K median$1,340/mo rent0.62% tax0.7% growth
37
New Castle, PA6.1% cap rate
$155K median$1,140/mo rent1.38% tax0.2% growth
38
Pittsburg, KS6.0% cap rate
$130K median$940/mo rent1.38% tax0.7% growth
39
Wheeling, WV6.0% cap rate
$135K median$900/mo rent0.58% tax-0.4% growth
40
Portales, NM6.0% cap rate
$145K median$970/mo rent0.77% tax0.8% growth
41
DuBois, PA6.0% cap rate
$135K median$980/mo rent1.38% tax0.2% growth
42
Sebring, FL6.0% cap rate
$230K median$1,550/mo rent0.86% tax1.9% growth

By Region

South (29)
Northeast (7)
West (4)
Midwest (2)

6% – 7% Cities by State

Oklahoma (4)West Virginia (4)Alabama (4)Louisiana (4)New Mexico (4)New York (4)Pennsylvania (3)Mississippi (2)Kentucky (2)South Carolina (2)Florida (2)Georgia (2)Virginia (1)Ohio (1)Tennessee (1)Arkansas (1)Kansas (1)

Frequently Asked Questions

What does a 6% – 7% cap rate mean?
A cap rate 6% – 7% means the property generates strong income relative to its price — for every $100,000 invested, you earn roughly $6,000-$7,000 per year in net operating income before financing.
Are 6% – 7% cap rate cities a good investment?
Yes — cities in the 6% – 7% range are among the strongest for cash flow investors. The 42 cities here average $171K in home prices and $1,231/mo in rent. Higher yields may come with lower growth or higher risk, so evaluate each city's fundamentals individually.
How many US cities have 6% – 7% cap rates?
CapRateCity tracks 42 US cities with cap rates in the 6% – 7% range. The South has the most cities in this tier (29), followed by the Northeast (7). Oklahoma leads with 4 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.

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