Updated 2026 · Based on median market data for Dayton, OH
Dayton sits in the Midwest with a population of 140,407 declining at -0.1% annually. The median home costs $140,000 while rents average $960/mo, producing an estimated cap rate of 5.24%. This is a moderate market that rewards careful deal sourcing.
Dayton works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 5.24% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $140,000 median — around $112,000 or less. At this price point with $960/mo rents, your cap rate improves to roughly 7.1%. Factor in 1.6% property taxes ($2,240/yr), budget 5% of gross rent for maintenance, and underwrite to a 7.2% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,031.
Population decline (-0.1%) is the primary risk — shrinking markets can see rising vacancy and downward pressure on rents and values. The 7.2% vacancy rate is above the national average, so budget conservatively and screen tenants carefully. Property taxes at 1.6% are notably high — this is a significant drag on NOI that some investors underestimate. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Dayton property using our cap rate calculator (pre-filled with Dayton data). Compare Dayton against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.