Cities with cap rates above 8% — the highest-yield markets in America. These offer exceptional unleveraged returns but may carry higher risk. We track 5 cities in this range.
Cities in the above 8% cap rate range represent some of the strongest cash flow markets in America. The 5 cities in this tier have an average home price of $135K and average rents of $1,222/mo. Prices are 60% below the national average — lower entry points mean less capital at risk and higher potential yields.
The top performer in this tier is Roanoke Rapids, NC with a 9.7% cap rate at $100K. For growth, Orangeburg, SC leads with 1.9% annual population growth.
Property taxes average 0.83% in this tier, below the 1.08% national average — a cash flow advantage. Vacancy rates average 6.1%, and population growth averages 1.24% annually. Positive growth supports sustained rental demand and long-term appreciation.
Markets in the above 8% 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.