Highest Cap Rate Markets for Rental Property (2026)
Cap rate measures the unlevered yield of a property, which makes it the cleanest way to compare markets without financing muddying the picture. These counties have the highest estimated cap rates in the country.
Top 50 markets, ranked
Jefferson County, AR leads with a median price of $85,670, median rent of $903, and a 8.2% cap rate. Click any market for the full county report, or run its numbers in the calculator.
| # | Market | Cap rate | Median price | Median rent | Cash flow | Analyze |
|---|---|---|---|---|---|---|
| 1 | Jefferson County, AR | 8.2% | $85,670 | $903 | $138 | Run numbers |
| 2 | Vermilion Parish, LA | 8.1% | $160,267 | $1,663 | $240 | Run numbers |
| 3 | Lauderdale County, MS | 7.9% | $125,825 | $1,279 | $172 | Run numbers |
| 4 | Hinds County, MS | 7.8% | $130,448 | $1,303 | $163 | Run numbers |
| 5 | Baltimore City, MD | 7.6% | $186,140 | $1,803 | $196 | Run numbers |
| 6 | Polk County, TX | 7.2% | $177,952 | $1,643 | $135 | Run numbers |
| 7 | Garfield County, OK | 6.9% | $142,534 | $1,268 | $77 | Run numbers |
| 8 | Iberia Parish, LA | 6.9% | $145,664 | $1,292 | $77 | Run numbers |
| 9 | Taylor County, TX | 6.9% | $227,401 | $2,011 | $115 | Run numbers |
| 10 | Robeson County, NC | 6.8% | $136,897 | $1,192 | $57 | Run numbers |
| 11 | Cambria County, PA | 6.7% | $102,271 | $875 | $33 | Run numbers |
| 12 | Huron County, OH | 6.6% | $199,799 | $1,701 | $58 | Run numbers |
| 13 | Vermilion County, IL | 6.5% | $105,054 | $869 | $14 | Run numbers |
| 14 | Montgomery County, AL | 6.4% | $165,606 | $1,366 | $20 | Run numbers |
| 15 | Kanawha County, WV | 6.4% | $154,657 | $1,266 | $12 | Run numbers |
| 16 | Dougherty County, GA | 6.3% | $125,637 | $1,016 | $2 | Run numbers |
| 17 | Orangeburg County, SC | 6.3% | $164,481 | $1,318 | -$5 | Run numbers |
| 18 | Wayne County, NC | 6.2% | $184,245 | $1,474 | -$7 | Run numbers |
| 19 | Wayne County, MI | 6.2% | $179,490 | $1,433 | -$10 | Run numbers |
| 20 | Lenoir County, NC | 6.2% | $152,691 | $1,220 | -$7 | Run numbers |
| 21 | Saint Landry Parish, LA | 6.2% | $132,916 | $1,058 | -$9 | Run numbers |
| 22 | Saint Lawrence County, NY | 6.2% | $150,602 | $1,197 | -$11 | Run numbers |
| 23 | Macon County, IL | 6.2% | $127,195 | $1,003 | -$15 | Run numbers |
| 24 | Clearfield County, PA | 6.2% | $137,762 | $1,087 | -$16 | Run numbers |
| 25 | Coffee County, AL | 6.1% | $183,797 | $1,436 | -$30 | Run numbers |
| 26 | Walker County, AL | 6.1% | $164,975 | $1,283 | -$31 | Run numbers |
| 27 | Erie County, OH | 6.0% | $242,265 | $1,869 | -$55 | Run numbers |
| 28 | Philadelphia County, PA | 6.0% | $234,557 | $1,797 | -$61 | Run numbers |
| 29 | Caddo Parish, LA | 6.0% | $151,879 | $1,162 | -$41 | Run numbers |
| 30 | Wichita County, TX | 5.9% | $171,666 | $1,297 | -$57 | Run numbers |
| 31 | Steuben County, NY | 5.9% | $174,606 | $1,315 | -$61 | Run numbers |
| 32 | Saint Clair County, IL | 5.8% | $181,995 | $1,358 | -$71 | Run numbers |
| 33 | Sumter County, SC | 5.8% | $204,805 | $1,523 | -$84 | Run numbers |
| 34 | Kershaw County, SC | 5.8% | $259,845 | $1,927 | -$109 | Run numbers |
| 35 | Venango County, PA | 5.8% | $132,739 | $982 | -$58 | Run numbers |
| 36 | Jefferson County, TX | 5.8% | $177,853 | $1,310 | -$81 | Run numbers |
| 37 | Saint Louis City, MO | 5.7% | $183,716 | $1,351 | -$85 | Run numbers |
| 38 | Harrison County, WV | 5.7% | $150,126 | $1,105 | -$69 | Run numbers |
| 39 | Chaves County, NM | 5.7% | $173,571 | $1,273 | -$83 | Run numbers |
| 40 | Terrebonne Parish, LA | 5.7% | $182,582 | $1,334 | -$90 | Run numbers |
| 41 | Hardin County, TX | 5.7% | $233,066 | $1,703 | -$115 | Run numbers |
| 42 | Peoria County, IL | 5.7% | $166,664 | $1,217 | -$83 | Run numbers |
| 43 | Schuylkill County, PA | 5.7% | $167,130 | $1,213 | -$88 | Run numbers |
| 44 | Bibb County, GA | 5.7% | $172,704 | $1,252 | -$92 | Run numbers |
| 45 | Pike County, PA | 5.7% | $305,946 | $2,216 | -$163 | Run numbers |
| 46 | Pulaski County, KY | 5.6% | $180,103 | $1,302 | -$98 | Run numbers |
| 47 | Gibson County, TN | 5.6% | $183,690 | $1,326 | -$101 | Run numbers |
| 48 | Darlington County, SC | 5.6% | $171,127 | $1,226 | -$100 | Run numbers |
| 49 | Comanche County, OK | 5.6% | $158,381 | $1,129 | -$96 | Run numbers |
| 50 | Richmond County, GA | 5.5% | $195,600 | $1,384 | -$126 | Run numbers |
Showing the top 50 of 963 qualifying markets.
How this ranking is calculated
We scored 963 counties with a population over 50,000 and ranked them by capitalization rate, calculated as annual net operating income divided by median home price. Markets without both a median home price and a median rent are excluded, because cash flow cannot be estimated without both.
Every figure assumes a median-priced home rented at the local median rent, financed with 20 percent down on a 30-year loan at 6.85%, with closing costs at 3 percent of price and operating costs at 35 percent of rent. Operating costs cover taxes, insurance, maintenance, vacancy, and management.
These are modeled estimates for comparing markets, not quotes on a specific property. A real deal turns on the individual property, its condition, and the actual rent it can command. Run any market that interests you through the calculator with real numbers before you make an offer.
Other ways to rank markets
The best market depends on what you are optimizing for. These rankings measure different things and produce different lists.
Best Cash Flow Markets for Rental Property
US counties ranked by estimated monthly cash flow on a median-priced rental, after mortgage and operating costs.
Best Rental Markets Under $200,000
US counties with a median home price under $200,000, ranked by estimated cap rate on a median-priced rental.
Cheapest Markets With Positive Cash Flow
The lowest-priced US counties where a median-priced rental still covers its mortgage and operating costs.
Best Appreciation Markets for Real Estate Investors
US counties ranked by appreciation score, blending recent home price growth with the risk of an overheated market.
Best Overall Real Estate Markets to Invest In
US counties ranked by overall investment score, blending cash flow, appreciation, stability, and affordability.
Narrow it down by state
Check a real deal in this market
These are median-priced estimates. Put in the actual price, rent, taxes, and financing for a property you are looking at and see whether it clears your bar.