Yonkers is functionally a NYC borough that sits across the city line — the Hudson River, Metro-North's Hudson Line, and direct Bee-Line bus access make commute integration effectively seamless. The 2.83% cap rate at a $705,000 median price reflects what happens when a market sits in NYC's gravitational pull but in Westchester County's tax structure. The 0.46% rent-to-price ratio sits below the 1% rule. Population growth at 0.2%/yr is steady, helped by continuing migration out of NYC and the broader Westchester downtown revitalization.
Employment is mostly commuter — most working Yonkers residents commute to Manhattan via Metro-North or the Bee-Line, with the Hudson Line providing a ~30-minute ride to Grand Central from southern Yonkers stations (Riverdale-adjacent). Locally, employment is anchored by Saint John's Riverside Hospital and St. Joseph's, the City of Yonkers government and school district, Sarah Lawrence College (just north), Cross County Shopping Center and the broader retail corridor, the Empire City Casino at Yonkers Raceway, and a long-standing manufacturing legacy (Otis Elevator was historically here, though the industrial base has shrunk). Submarkets stratify dramatically: the Hudson River-facing zones (Hastings-adjacent, Riverdale-adjacent, Park Hill) draw premium NYC-commuter rentals at the highest pricing; downtown Yonkers has been gentrifying with new mixed-use development (the riverfront redevelopment around the Metro-North station); the Cross County / Saw Mill River corridor has more workforce-rental inventory; northeast Yonkers and parts of north Yonkers are more suburban with strong family-school demand.
Westchester County's property tax structure is among the highest in the country — 1.65% as the metro headline masks per-municipality variance, and Yonkers proper has some of the higher effective rates within the county. Underwrite the tax line very conservatively and pull the per-parcel history. New York state income tax is graduated with a top rate near 10.9% (over 14.7% in NYC, which doesn't apply in Yonkers but the city has its own resident-income surcharge — verify if you're a NY resident landlord). NY landlord-tenant law is among the most tenant-protective in the country — rent stabilization affects many older buildings in Yonkers (pre-1974 construction in buildings with 6+ units), Good Cause Eviction provisions apply, and eviction timelines run 6-12 months. Verify rent-stabilization status per building before underwriting. Insurance is reasonable. The structural advantages: direct NYC commute access at materially better pricing than the city proper, and continuing migration from NYC. The structural risks: NY regulatory environment is genuinely the most operator-unfriendly in the country — operate here only with comfort around the legal framework.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Yonkers's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $705,000, the $3,260/mo rent produces only $1,664/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($141K at 7%) would result in approximately $-2,087/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
Property taxes consume 30% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Yonkers a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
All figures below are computed from Yonkers's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
At 1.65% effective rate on the $705,000 median price, the annual tax bill is $11,633 — that's very high (top 15% of US markets) (+56% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
If Yonkers continues appreciating at 2.5%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $705K | $3,260 | 2.8% |
| Year 1 | $723K | $3,358 | 2.8% |
| Year 2 | $741K | $3,459 | 2.9% |
| Year 3 | $759K | $3,562 | 2.9% |
| Year 4 | $778K | $3,669 | 2.9% |
| Year 5 | $798K | $3,779 | 2.9% |
Same median-priced Yonkers property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $705K | $1,664 | $19,970 | 2.8% |
| 20% down conventional @ 7% | $162K | $-2,086 | $-25,037 | -15.4% |
| 25% down DSCR @ 8.5% | $204K | $-2,402 | $-28,823 | -14.1% |
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $529K | $2,771 | $15,496 | 2.9% | $1,291 |
| At median | $705K | $3,260 | $16,531 | 2.3% | $1,378 |
| Above median (~125% price) | $881K | $3,749 | $17,565 | 2.0% | $1,464 |
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Yonkers's historical appreciation rate of 2.5%:
On a $141K down payment, that's a 6.9% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Automated checks against the underlying data — surface only the risks that actually apply to Yonkers, not generic boilerplate:
Pre-filled with Yonkers medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Yonkers.
Yonkers, NY has a population of 213,000 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $705,000 paired with median rents of $3,260/mo produces an estimated cap rate of 2.83%.
Property taxes at 1.65% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 10.3x, homes cost about 10.3 times the local median income of $68,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: At current median prices, Yonkers is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.