17 Missouri cities ranked by estimated cap rate. The average cap rate across Missouri markets is 3.3%, with median home prices averaging $241K and rents averaging $1,126/mo. Branson leads with a 4.8% cap rate at a $245K median price. Property taxes average 1.25% across Missouri markets.
Missouri offers 17 investable rental markets tracked by CapRateCity. The state average cap rate of 3.3% 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: Missouri home prices average $241K, which is 28% below the national average of $333K. Rents average $1,126/mo. The most affordable entry point is Sikeston at $160K, while Branson offers the highest cap rate at 4.8%.
Taxes and costs: Property taxes average 1.25% across Missouri, above the 1.08% national average — investors should model tax expense carefully. Springfield has the lowest rate at 1.18%.Vacancy averages 6.0%, in line with national norms.
Growth outlook: Population growth across Missouri averages 0.51% per year, led by Kansas City at 0.8%. Home values are appreciating at 2.5% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Missouri 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.