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Cap Rate Analysis: Pittsburgh, PA

Investment metrics, interactive calculators, and data-driven analysis for Pittsburgh rental properties.

Moderate — source deals carefully
Based on $220,000 median price and $1,250/mo median rent
Est. Cap Rate
4.25%
1% Rule
0.57%
Fails
GRM
14.7x
Price / Income
4.2x

Market Data

Median Home Price$220,000
Median Monthly Rent$1,250
Property Tax Rate1.36%
Population302,971
Population Growth0.2% / yr
Median Household Income$52,800
Vacancy Rate6%
Annual Appreciation2.3%

Cap Rate Calculator — Pittsburgh

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.36% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.43%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,536
net operating income
Gross Rent Multiplier
14.7x
Good (<15)
1% Rule
0.57%
✗ Fails
Monthly Cash Flow
$628
before debt service
Annual Breakdown
Gross Rental Income$15,000
Less Vacancy−$900
Effective Income$14,100
Less Operating Expenses−$6,564
Net Operating Income$7,536

Cash-on-Cash Return — Pittsburgh

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

$
$55,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.83%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$61,600
$55,000 down + $6,600 closing
Monthly Mortgage
$1,076
on $165K loan
Monthly Cash Flow
$-351
after all expenses
Annual Cash Flow
$-4,208
before taxes
Cash Flow Breakdown
Monthly Rent$1,250
Less Expenses−$525
Less Mortgage−$1,076
Monthly Cash Flow$-351

Is Pittsburgh a Good Place to Invest in Rental Property?

Pittsburgh, PA has a population of 302,971 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $220,000 paired with median rents of $1,250/mo produces an estimated cap rate of 4.25%.

Property taxes at 1.36% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.2x, homes cost about 4.2 times the local median income of $52,800. 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 2.3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Pittsburgh presents moderate opportunities. Cap rates near 4.25% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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