8 Massachusetts cities ranked by estimated cap rate. The average cap rate across Massachusetts markets is 3.0%, with median home prices averaging $549K and rents averaging $2,384/mo. Springfield leads with a 3.9% cap rate at a $360K median price. Property taxes average 1.19% across Massachusetts markets.
Massachusetts offers 8 investable rental markets tracked by CapRateCity. The state average cap rate of 3.0% 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: Massachusetts home prices average $549K, which is 65% above the national average of $333K. Rents average $2,384/mo. The most affordable entry point is New Bedford at $310K, while Springfield offers the highest cap rate at 3.9%.
Taxes and costs: Property taxes average 1.19% across Massachusetts, above the 1.08% national average — investors should model tax expense carefully. Lowell has the lowest rate at 1.15%.Vacancy averages 5.3%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Massachusetts averages 0.31% per year, led by Worcester at 0.6%. Home values are appreciating at 2.8% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Massachusetts 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.