Ithaca is a mid-range market in the Northeast with a small but investable metro of 50,000. At a 4.00% estimated cap rate, this is a moderate market where rents of $1,970/mo lag behind home prices. With a median home price of $340,000 and the population has been declining, which investors should factor into long-term projections, Ithaca offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Ithaca's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $340,000, the $1,970/mo rent produces only $1,135/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($68K at 7%) would result in approximately $-674/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
Property taxes consume 25% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Ithaca a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Pre-filled with Ithaca medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Ithaca.
Ithaca, 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 $340,000 paired with median rents of $1,970/mo produces an estimated cap rate of 4.00%.
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 7.7x, homes cost about 7.7 times the local median income of $43,975. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. 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: Ithaca presents moderate opportunities. Cap rates near 4.00% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.