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Elmira, NY Cap Rate: 6.64% — Rental Property Analysis

Elmira is one of the most affordable markets in the country in the Northeast with a small but investable metro of 50,000. At a 6.64% estimated cap rate, this is a solid market where rents of $1,220/mo lag behind home prices. With a median home price of $150,000 and the population has been declining, which investors should factor into long-term projections, Elmira stands out as a market worth serious analysis for rental investors.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Strong investment fundamentals
Based on $150,000 median price and $1,220/mo median rent
Est. Cap Rate
6.64%
1% Rule
0.81%
Fails
GRM
10.2x
Price / Income
3.4x

Market Data

Median Home Price$150,000
Median Monthly Rent$1,220
Property Tax Rate1.71%
Population50,000
Population Growth0% / yr
Median Household Income$43,975
Vacancy Rate6.3%
Annual Appreciation2.1%

2026 Market Update: Elmira

At a 0.8% rent-to-price ratio, Elmira falls just below the 1% rule threshold. A median-priced property at $150,000 with $1,220/mo rent yields approximately $829/mo in NOI — workable with favorable financing but not a slam-dunk cash flow market.

On a conventional loan with 20% down ($30K) at 7%, estimated monthly cash flow is $31 — a thin 1.2% cash-on-cash return. Investors should negotiate below asking price or target properties with above-median rents to build a meaningful cash flow buffer.

The 10.2x gross rent multiplier and 6.3% vacancy rate position Elmira as a value-oriented market. With annual appreciation at 2.1%, total returns (cash flow + equity growth) run approximately 8.7% before financing leverage.

Cap Rate Calculator — Elmira

Pre-filled with Elmira medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.71% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
5.27%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$7,910
net operating income
Gross Rent Multiplier
10.2x
Good (<15)
1% Rule
0.81%
✗ Fails
Monthly Cash Flow
$659
before debt service
Annual Breakdown
Gross Rental Income$14,640
Less Vacancy−$922
Effective Income$13,718
Less Operating Expenses−$5,808
Net Operating Income$7,910
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Cash-on-Cash Return — Elmira

Factor in financing to see your actual return on invested capital in Elmira.

$
$37,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-0.73%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$42,000
$37,500 down + $4,500 closing
Monthly Mortgage
$733
on $113K loan
Monthly Cash Flow
$-25
after all expenses
Annual Cash Flow
$-305
before taxes
Cash Flow Breakdown
Monthly Rent$1,220
Less Expenses−$512
Less Mortgage−$733
Monthly Cash Flow$-25

Is Elmira a Good Place to Invest in Rental Property?

Elmira, NY has a population of 50,000 and has been growing at 0% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $150,000 paired with median rents of $1,220/mo produces an estimated cap rate of 6.64%.

Property taxes at 1.71% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 6.3% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.4x, homes cost about 3.4 times the local median income of $43,975. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Elmira offers attractive fundamentals for rental investors. and cap rates above 6% put it in the upper tier of investable markets.

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