24 New York cities ranked by estimated cap rate. The average cap rate across New York markets is 4.2%, with median home prices averaging $284K and rents averaging $1,574/mo. Elmira leads with a 6.6% cap rate at a $150K median price. Note that New York's average property tax rate of 1.71% is above the national average — factor this into your underwriting.
New York offers 24 investable rental markets tracked by CapRateCity. The state average cap rate of 4.2% is above the 3.81% national average, making New York an attractive state for cash flow investors. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: New York home prices average $284K, which is 15% below the national average of $333K. Rents average $1,574/mo. The most affordable entry point is Ogdensburg at $135K, while Elmira offers the highest cap rate at 6.6%.
Taxes and costs: Property taxes average 1.71% across New York, above the 1.08% national average — investors should model tax expense carefully. Yonkers has the lowest rate at 1.65%.Vacancy averages 6.3%, in line with national norms.
Growth outlook: Population growth across New York averages -0.01% per year, led by Yonkers at 0.2%. Home values are appreciating at 2.1% annually on average. Flat or declining population means investors should focus on the strongest individual markets rather than betting on state-wide trends.
Bottom line: New York offers moderate opportunities for rental investors. The best deals are in cities at the top of the ranking — use the calculators on each city page to model specific properties.