10 Nebraska cities ranked by estimated cap rate. The average cap rate across Nebraska markets is 3.3%, with median home prices averaging $250K and rents averaging $1,258/mo. Lexington leads with a 4.6% cap rate at a $205K median price. Note that Nebraska's average property tax rate of 1.62% is above the national average — factor this into your underwriting.
Nebraska offers 10 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: Nebraska home prices average $250K, which is 25% below the national average of $333K. Rents average $1,258/mo. The most affordable entry point is Beatrice at $190K, while Lexington offers the highest cap rate at 4.6%.
Taxes and costs: Property taxes average 1.62% across Nebraska, above the 1.08% national average — investors should model tax expense carefully. Grand Island has the lowest rate at 1.6%.Vacancy averages 5.2%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Nebraska averages 0.70% per year, led by Lincoln at 0.9%. Home values are appreciating at 2.5% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Nebraska 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.