15 Virginia cities ranked by estimated cap rate. The average cap rate across Virginia markets is 4.1%, with median home prices averaging $337K and rents averaging $1,631/mo. Danville leads with a 6.5% cap rate at a $160K median price. Property taxes average 0.86% across Virginia markets.
Virginia offers 15 investable rental markets tracked by CapRateCity. The state average cap rate of 4.1% is above the 3.81% national average, making Virginia 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: Virginia home prices average $337K, which is 1% above the national average of $333K. Rents average $1,631/mo. The most affordable entry point is Martinsville at $135K, while Danville offers the highest cap rate at 6.5%.
Taxes and costs: Property taxes average 0.86% across Virginia, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $746 per year to NOI on an average-priced property. Fredericksburg has the lowest rate at 0.76%.Vacancy averages 5.2%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Virginia averages 0.71% per year, led by Fredericksburg at 1.5%. Home values are appreciating at 2.9% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Virginia 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.