1 DC cities ranked by estimated cap rate. The average cap rate across DC markets is 2.7%, with median home prices averaging $570K and rents averaging $2,330/mo. Washington leads with a 2.7% cap rate at a $570K median price. Property taxes average 1.10% across DC markets.
DC offers 1 investable rental markets tracked by CapRateCity. The state average cap rate of 2.7% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: DC home prices average $570K, which is 71% above the national average of $333K. Rents average $2,330/mo.
Taxes and costs: Property taxes average 1.10% across DC, above the 1.08% national average — investors should model tax expense carefully. Washington has the lowest rate at 1.1%.Vacancy averages 5.5%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across DC averages 0.90% per year, led by Washington at 0.9%. Home values are appreciating at 2.7% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: DC is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.