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Dayton vs Toledo for Rental Property Investing

Side-by-side comparison of Dayton, OH and Toledo, OH — cap rates, rent, prices, and investment metrics.

Dayton wins 4–3 across key metrics
Toledo leads on cash flow (4.33% vs 1.88% cap rate) · Dayton leads on population growth
Metric
Dayton, OH
Toledo, OH
Est. Cap Rate
1.88%
4.33%
Median Home Price
$250,000
$190,000
Median Monthly Rent
$960
$1,160
1% Rule
0.38%
0.61%
GRM
21.7x
13.6x
Price / Income
6.9x
4.9x
Property Tax Rate
1.6%
1.65%
Vacancy Rate
7.2%
7.5%
Population Growth
-0.1% / yr
-0.3% / yr
Annual Appreciation
2%
1.8%
Population
140,407
268,508
Median Income
$36,200
$38,600

Dayton vs Toledo: Which Is Better for Investors?

Cash flow: Toledo has the edge with an estimated cap rate of 4.33% compared to Dayton's 1.88%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $250,000 in Dayton vs $190,000 in Toledo, while rents come in at $960/mo and $1,160/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Dayton is growing faster at -0.1% annually, while Toledo is losing population. Dayton leads on home value appreciation at 2% per year.

Costs & risk: Property taxes are 1.6% in Dayton vs 1.65% in Toledo. Vacancy rates of 7.2% and 7.5% are both elevated, warranting conservative cash flow projections.

Entry point: Toledo offers a lower entry at $190K vs Dayton's $250K — a difference of $60K. With a 20% down payment, that's $38K vs $50K. Toledo combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Dayton edges out Toledo on most key metrics. While cap rates are moderate at 1.88%, Dayton's overall profile is stronger. Use our free calculators to model specific deals in Dayton or Toledo.

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Dayton, OH
1.88% cap rate · $250,000 median · $960/mo
Full analysis →
Toledo, OH
4.33% cap rate · $190,000 median · $1,160/mo
Full analysis →

Frequently Asked Questions

Is Dayton or Toledo better for rental investing?
Dayton wins 4–3 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Dayton's 1.88% cap rate and $250K median price edge out Toledo's 4.33% at $190K.
What is the cap rate difference between Dayton and Toledo?
Dayton has a 1.88% cap rate vs Toledo's 4.33% — a difference of 2.45 percentage points. This is a significant gap that meaningfully impacts cash flow. For context, the national average is 3.81%.
Which city has lower property taxes?
Dayton has lower property taxes at 1.6% vs 1.65%. On a $220K property, that's a difference of approximately $865/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Dayton is growing at -0.1% annually vs Toledo's -0.3%. Both cities have slow growth — focus on the strongest neighborhoods. Dayton's appreciation rate of 2% also leads on home value growth.

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