Lyon County

Lyon County sits at a 3.22% cap rate on a $195,483 median purchase price, with gross rent of $806 per month producing a rent-to-price ratio of 0.49%. At 6.85% financing with 20% down, the modeled cash flow is negative $501 per month and cash-on-cash return lands at -13.37%. Those numbers place Lyon firmly toward the appreciation end of the spectrum rather than the cash-flow end, which is an unusual posture for a small Kansas county with a population of 32,182. The one thing working in its favor on the appreciation side is a 5.64% year-over-year home price gain, and the market scores 88 out of 100 on both appreciation and affordability, with a median price under $200,000. The stability score of 50 and cash-flow score of 44 confirm what the underwriting already says: this is not a market where you buy, finance conventionally, and collect checks.

The investor this market suits is either an all-cash or low-leverage buyer hunting yield from a low basis, or a longer-horizon appreciation buyer willing to carry a monthly deficit. At $195,000 median, an all-cash buyer gets a gross yield of roughly 4.95% before expenses, which is thin but not absurd for a sub-$200,000 asset. The 5.64% annual price appreciation is the more compelling argument, and if that pace holds, a buyer at today's prices could see meaningful equity gains within a three-to-five year hold. A value-add operator might find opportunity here specifically because rents are low relative to the price gains already baked in: if forced appreciation through renovation can push rents meaningfully above the $806 median, the cap rate story improves. What this market is not suited for is a leveraged buy-and-hold investor who needs day-one cash flow, as the financing math simply does not close at current rates.

The monthly tax and insurance load deserves attention in any underwrite. At Kansas's state-average effective property tax rate of 1.41%, the annual tax bill on a $195,483 purchase comes to roughly $2,756, and insurance adds another $1,134 annually, putting the combined monthly carry for taxes and insurance at $324. That is a real number, not a rounding error, and it is embedded in the negative cash flow figure above. The 1.41% rate is flagged as normal relative to other states, so it is not an outlier tax burden, but it is not a tailwind either. Keep in mind that 1.41% is a state-average estimate; actual Lyon County and township rates may vary, so verify the specific mill levy before closing.

The primary risk in Lyon County is concentration. At 32,182 residents, this is a small market, and rental demand is inherently tied to a narrow employment base. Any contraction in the county's major employers or institutional anchors would move vacancy quickly in a pool this size. No economic anchor data was provided for this county, so the specific demand drivers cannot be assessed here, but any investor underwriting Lyon should independently verify the stability of the local employment base before committing capital. The stability score of 50 out of 100 reflects exactly this uncertainty. Demographic concentration in a small market also limits the exit pool: when you go to sell, your buyer universe is thinner than in a metro, which can compress realized appreciation even if paper values rise.

Compared to its neighbors, Lyon is a middle-of-the-road market on price but a laggard on rent yield. Wyandotte County, with a median rent of $1,229 and a rent-to-price ratio of 7.34% on a $201,013 median, is materially better positioned for cash flow, and its overall score of 66 is comparable to Lyon's 65. If cash flow is the priority, Wyandotte is the cleaner trade. Riley County carries a higher median price of $261,211 but also generates $1,339 in median rent and a rent-to-price ratio of 6.15%, which is meaningfully above Lyon's 4.95%. McPherson County at $225,352 median produces $1,004 in rent and a 5.35% rent-to-price ratio, again outpacing Lyon on yield. Jewell and Rush counties offer dramatically cheaper entry points ($107,843 and $85,174 respectively) for investors willing to accept the illiquidity and demographic risk of very small markets. The case for choosing Lyon over its neighbors rests almost entirely on its 88-point appreciation score and the 5.64% price growth already on the books. If you believe that price appreciation continues and you can tolerate negative carry or eliminate it through leverage reduction, Lyon merits a look. If cash flow is the mandate, the data points elsewhere.