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Rental Property Investment Guide: Urbana, OH

Updated 2026 · Based on median market data for Urbana, OH

Cap Rate
2.05%
Median Price
$240K
Rent/Mo
$950
1% Rule
0.40%
Fails

Market Snapshot

Urbana sits in the Midwest with a population of 50,000 growing at 0.2% annually. The median home costs $240,000 while rents average $950/mo, producing an estimated cap rate of 2.05%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.

Who Should Invest Here

Urbana works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 2.05% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.

Deal Criteria for Urbana

Target properties priced 15-25% below the $240,000 median — around $192,000 or less. At this price point with $950/mo rents, your cap rate improves to roughly 3.2%. Factor in 1.58% property taxes ($3,792/yr), budget 5% of gross rent for maintenance, and underwrite to a 6.7% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,693.

Risks and Considerations

Property taxes at 1.58% are notably high — this is a significant drag on NOI that some investors underestimate. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific Urbana property using our cap rate calculator (pre-filled with Urbana data). Compare Urbana against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

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How Urbana Compares

Urbana vs Ohio state average and national average across key investment metrics. Urbana's cap rate is below both benchmarks — deal sourcing is critical here.

Metric
Urbana
Ohio Avg
National Avg
Cap Rate
2.05%
3.65%
3.81%
Median Price
$240K
$218K
$333K
Median Rent
$950
$1,149
$1,524
Property Tax
1.58%
1.58%
1.08%
Vacancy
6.7%
6.7%
5.6%
Pop. Growth
0.2%/yr
0.2%/yr
0.9%/yr

Nearby Midwest Markets

City
Cap Rate
Price
Rent
Tax
Urbana, OH
2.1%
$240K
$950
1.58%
Lansing, MI
4.0%
$240K
$1,330
1.42%
Cleveland, OH
4.0%
$240K
$1,390
1.63%
Bellefontaine, OH
3.1%
$240K
$1,180
1.58%
Muskegon, MI
3.2%
$240K
$1,170
1.46%

Frequently Asked Questions

Is Urbana, OH a good place to invest in rental property?
Urbana has an estimated cap rate of 2.05%, which is below the national average of 3.81%. With median home prices at $240K and rents of $950/mo, pure cash flow investing in Urbana is challenging at median prices, but value-add strategies can work. Population growth of 0.2% and 6.7% vacancy rate suggest moderate rental demand.
What is the average cap rate in Urbana?
The estimated cap rate for Urbana is 2.05%, based on median home prices of $240K, median rents of $950/mo, a 1.58% property tax rate, and 6.7% vacancy. This compares to a 3.65% average across Ohio and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in Urbana?
The median home price in Urbana is $240,000, which is 28% below the national average of $333,419. A 20% down payment would be approximately $48,000. Investment properties in Urbana range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Urbana property taxes for investors?
Urbana's effective property tax rate is 1.58%, which is above the Ohio average of 1.58% and above the national average of 1.08%. On a $240K property, annual taxes are approximately $3,792 ($316/mo). Higher property taxes are one of the largest operating expenses — model this carefully.
Full Urbana Analysis →Cap Rate CalculatorBRRRR Calculator

Explore Urbana & Related Markets

More Urbana Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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