"single family"

Are you thinking where to invest in a long-term rental property in 2021?

Then you need to know what traditional cap rates by city to expect in 2021.

The reason to look at the capitalization rate is that this is a relatively easy-to-use metric for return on investment which will allow you to compare the investment potential of various locations quickly and comfortably. While the cap rate formula does not include the method of financing of a rental property, it helps beginner and experienced real estate investors find out where they can expect to find the most profitable income properties.

To help you out with your investment property search in 2021, we will show you what rap rates by city the US housing market offers for traditional rentals. But that’s not all. We will also take a look at the median property prices as well as the average rental income and the price to rent ratios in 100 of the best US cities to buy a rental property this year. This comprehensive real estate data, provided by Mashvisor, will let you make a profitable real estate investing decision that is within your budget and that promises a strong demand by tenants.

Interested to learn more about the 2021 price to rent ratio by city in the US? Click here.

Furthermore, we will provide you with city-average capitalization rates for different property types including single-family homes, condos and apartments, townhouses, multi-family real estate, and even foreclosures. As you will see in a bit, property types offer very different return on investment even within the same housing market. So, you need this data to know where to focus your traditional rental property search in 2021, depending on your budget and your preferred property type.

So, now let’s take a look at the traditional cap rates by city in 2021:

2021 Cap Rates by City: Where to Invest in Long-Term Rentals

We’ve organized the data provided by Mashvisor’s real estate investment software into tables to make it easier to go through and analyze. We will start with the 100 real estate markets which promise to generate the highest return for traditional rental properties in 2021:

Table 1: Traditional Cap Rates by City in 2021, All Property Types

	City and State	Traditional Cap Rate	Traditional Rental Income	Median Property Price	Price to Rent Ratio
#1	Baltimore, MD	4.16%	$1,669	$306,956	15
#2	Detroit, MI	4.12%	$990	$180,999	15
#3	Buffalo, BY	3.90%	$1,043	$200,985	16
#4	Aurora, IL	3.84%	$1,555	$222,397	12
#5	Akron, OH	3.82%	$828	$150,381	15
#6	Fayetteville, NC	3.76%	$1,163	$223,337	16
#7	Alexandria, VA	3.71%	$2,308	$561,708	20
#8	Clearwater, FL	3.71%	$1,769	$407,414	19
#9	Augusta, GA	3.64%	$1,007	$235,193	19
#10	Cleveland, OH	3.59%	$975	$180,499	15
#11	Abilene, TX	3.53%	$1,386	$263,319	16
#12	Baton Rouge, LA	3.50%	$1,324	$313,935	20
#13	Indianapolis, IN	3.46%	$1,127	$263,239	19
#14	Fort Wayne, IN	3.46%	$1,192	$262,809	18
#15	Birmingham, AL	3.45%	$1,324	$306,786	19
#16	Milwaukee, WI	3.43%	$1,059	$201,431	16
#17	Bradenton, Fl	3.36%	$1,794	$431,811	20
#18	Philadelphia, PA	3.33%	$1,484	$374,508	21
#19	Honolulu, HI	3.29%	$2,295	$852,913	31
#20	Louisville, KY	3.18%	$1,146	$262,674	19
#21	Jacksonville, FL	3.17%	$1,272	$282,320	19
#22	Orlando, FL	3.14%	$1,567	$328,143	17
#23	Pensacola, FL	3.13%	$1,768	$522,086	25
#24	Chattanooga, TN	3.12%	$1,420	$331,394	19
#25	Chandler, AZ	3.07%	$1,955	$466,065	20
#26	Irving, TX	3.02%	$2,009	$394,853	16
#27	West Palm Beach, FL	2.98%	$1,675	$316,434	16
#28	Mesa, AZ	2.95%	$1,513	$370,582	20
#29	Scottsdale, AZ	2.90%	$3,275	$1,034,251	26
#30	Columbus, OH	2.90%	$1,204	$272,796	19
#31	New Orleans, LA	2.90%	$1,839	$477,508	22
#32	Memphis, TN	2.90%	$1,093	$287,493	22
#33	Arlington, TX	2.90%	$1,617	$318,823	16
#34	Bakersfield, CA	2.86%	$1,580	$380,973	20
#35	St. Louis, MO	2.84%	$1,108	$265,800	20
#36	College Station, TX	2.81%	$1,453	$314,460	18
#37	Virginia Beach, VA	2.80%	$1,592	$412,793	22
#38	Gilbert, AZ	2.80%	$2,047	$498,470	20
#39	Albany, NY	2.80%	$1,525	$284,720	16
#40	Sarasota, FL	2.78%	$2,313	$730,322	26
#41	Atlanta, GA	2.77%	$2,067	$480,409	19
#42	Pittsburgh, PA	2.75%	$1,336	$342,900	21
#43	Colorado Springs, CO	2.75%	$1,607	$472,277	25
#44	Richmond, VA	2.73%	$1,433	$369,318	21
#45	Nashville, TN	2.72%	$1,676	$482,565	24
#46	Hollywood, FL	2.72%	$2,332	$477,599	17
#47	Fort Worth, TX	2.71%	$1,642	$339,589	17
#48	Tampa, FL	2.69%	$1,766	$488,753	23
#49	Tulsa, OK	2.69%	$1,220	$407,275	28
#50	Lubbock, TX	2.67%	$1,313	$294,471	19
#51	Houston, TX	2.66%	$1,814	$407,186	19
#52	Cincinnati, OH	2.65%	$1,373	$354,217	22
#53	Anaheim, CA	2.63%	$3,252	$736,566	19
#54	Little Rock, AR	2.62%	$1,192	$323,694	23
#55	Tallahassee, FL	2.61%	$1,219	$286,591	20
#56	Durham, NC	2.61%	$1,467	$407,094	23
#57	Albuquerque, NM	2.58%	$1,357	$356,498	22
#58	Rochester, NY	2.57%	$1,082	$187,580	14
#59	Grand Rapids, MI	2.54%	$1,162	$308,548	22
#60	Washington, DC	2.53%	$2,355	$692,610	25
#61	Corpus Christi, TX	2.49%	$1,380	$301,121	18
#62	Las Vegas, NV	2.48%	$1,355	$468,337	29
#63	Bloomington, IN	2.48%	$1,362	$387,652	24
#64	Tucson, AZ	2.44%	$1,166	$320,662	23
#65	Arlington, VA	2.44%	$2,324	$659,360	24
#66	Henderson, NV	2.43%	$1,619	$600,245	31
#67	Pompano Beach, FL	2.43%	$1,906	$396,327	17
#68	Minneapolis, MN	2.42%	$1,776	$369,517	17
#69	Lexington, KY	2.41%	$1,219	$339,352	23
#70	Boca Raton, FL	2.40%	$2,234	$691,195	26
#71	El Paso, TX	2.39%	$1,215	$248,999	17
#72	Kansas City, MO	2.38%	$1,231	$313,759	21
#73	San Antonio, TX	2.37%	$1,452	$288,008	17
#74	Raleigh, NC	2.37%	$1,572	$503,692	27
#75	Fort Myers, FL	2.32%	$1,477	$334,426	19
#76	Fort Collins, CO	2.30%	$1,940	$540,757	23
#77	Charlotte, NC	2.29%	$1,715	$474,769	23
#78	Phoenix, AZ	2.26%	$1,528	$465,610	25
#79	Miami, FL	2.25%	$2,605	$618,444	20
#80	Dallas, TX	2.02%	$1,854	$465,534	21
#81	Long Beach, CA	1.96%	$3,285	$872,688	22
#82	Madison, WI	1.95%	$1,466	$415,308	24
#83	San Diego, CA	1.91%	$2,635	$843,901	27
#84	Fort Lauderdale, FL	1.91%	$2,650	$692,340	22
#85	Los Angeles, CA	1.90%	$3,631	$1,144,675	26
#86	Knoxville, TN	1.89%	$1,055	$361,306	29
#87	Spokane, WA	1.76%	$1,150	$360,374	26
#88	Fresno, CA	1.74%	$1,122	$348,134	26
#89	Jersey City, NJ	1.59%	$2,188	$669,657	26
#90	Chicago, IL	1.58%	$2,019	$471,896	19
#91	Naples, FL	1.57%	$1,988	$654,422	27
#92	Portland, OR	1.57%	$2,039	$632,097	26
#93	Pasadena, CA	1.53%	$3,582	$1,195,497	28
#94	Reno, NV	1.52%	$1,490	$581,879	33
#95	San Francisco, CA	1.40%	$4,288	$1,478,164	29
#96	Austin, TX	1.38%	$1,912	$677,893	30
#97	Irvine, CA	1.38%	$3,324	$1,070,825	27
#98	San Jose, CA	1.28%	$2,864	$981,729	29
#99	Miami Beach, FL	1.22%	$2,712	$897,182	28
#100	New York, NY	1.06%	$2,754	$1,159,516	35

Traditional Rentals Capitalization Rate Data: Summary

According to Mashvisor’s nationwide real estate market analysis, in 2021 the 100 most profitable cities for investing in long-term rental properties are expected to provide return on investment ranging from 1.06% in the New York real estate market to 4.16% in the Baltimore real estate market. This means that first-time real investors looking for lucrative deals should consider Baltimore as a possible location for their traditional rental property.

This city has another important advantage which makes it ideal for those just getting started. Namely, property prices there are significantly more affordable than in other cities. However, when exploring the Baltimore housing market 2021 for investment opportunities, you should keep in mind that the price to rent ratio by city there is relatively low. While this is one of the factors which push the capitalization rate up, it also signals that rental demand will be weak. You will need to put in extra marketing efforts to get your property rented out. But once you manage to get good tenants for your traditional rental property, the return on investment will make your efforts worth it.

In case you’d like to compare the 2021 cap rates by city with the 2020 value, click here.

Now that we know what 2021 cap rates by city to expect across all real estate listings in the US housing market, it’s time to take a look at how the rate of return on a rental property will vary by property type.

We’ll start with single-family homes. Generally speaking, this is the most popular property type in the majority of US cities in addition to being a good first investment property.

Table 2: Traditional Cap Rates by City in 2021, Single-Family Homes

	City and State	Traditional Cap Rate	Traditional Rental Income	Median Property Price	Price to Rent Ratio
#1	Detroit, MI	$891	4.94%	$148,373	14
#2	Portsmouth, VA	$1,373	4.82%	$209,849	13
#3	Cleveland, OH	$905	4.51%	$145,957	13
#4	Garland, TX	$1,479	3.96%	$282,659	16
#5	Norfolk, VA	$1,464	3.92%	$285,207	16
#6	Akron, OH	$818	3.92%	$150,006	15
#7	Baltimore, MD	$1,608	3.87%	$305,146	16
#8	Fayetteville, NC	$1,179	3.81%	$226,535	16
#9	Milwaukee, WI	$1,067	3.67%	$193,314	15
#10	Augusta, GA	$1,012	3.64%	$235,345	19
#11	Abilene, TX	$1,400	3.56%	$262,288	16
#12	Fort Wayne, IN	$1,216	3.56%	$265,161	18
#13	Hampton, VA	$1,190	3.54%	$241,613	17
#14	Indianapolis, IN	$1,141	3.52%	$258,230	19
#15	Birmingham, AL	$1,343	3.50%	$312,567	19
#16	Chesapeake, VA	$1,730	3.48%	$349,900	17
#17	Carrollton, TX	$1,888	3.47%	$344,370	15
#18	New Orleans, LA	$1,890	3.45%	$456,497	20
#19	Columbus, GA	$1,026	3.43%	$242,151	20
#20	Miami, FL	$2,676	3.41%	$637,889	20
#21	Wichita, KS	$1,087	3.36%	$254,050	19
#22	Minneapolis, MN	$1,719	3.35%	$354,211	17
#23	Pensacola, FL	$1,621	3.33%	$442,674	23
#24	Columbia, SC	$1,293	3.32%	$330,863	21
#25	Louisville, KY	$1,151	3.30%	$262,573	19
#26	West Palm Beach, FL	$2,105	3.26%	$439,390	17
#27	Atlanta, GA	$2,053	3.23%	$496,030	20
#28	Jacksonville, FL	$1,269	3.21%	$290,171	19
#29	Columbus, OH	$1,186	3.21%	$266,860	19
#30	Philadelphia, PA	$1,491	3.19%	$333,722	19
#31	Chicago, IL	$1,743	3.13%	$411,395	20
#32	Decatur, GA	$1,619	3.13%	$350,666	18
#33	Arlington, TX	$1,693	3.12%	$331,752	16
#34	Irving, TX	$2,054	3.11%	$427,392	17
#35	Lake Worth, FL	$1,994	3.10%	$391,331	16
#36	St. Louis, MO	$1,135	3.07%	$277,050	20
#37	Gainesville, FL	$1,533	3.06%	$344,659	19
#38	Corpus Christi, TX	$1,449	3.05%	$321,951	19
#39	Hollywood, FL	$2,163	3.02%	$490,518	19
#40	Grand Rapids, MI	$1,187	2.96%	$275,422	19
#41	Orlando, FL	$1,727	2.92%	$424,261	20
#42	Richardson, TX	$2,009	2.92%	$423,005	18
#43	Bloomington, IN	$1,435	2.91%	$365,274	21
#44	Chandler, AZ	$2,004	2.87%	$513,881	21
#45	Nashville, TN	$1,713	2.84%	$477,156	23
#46	Richmond, VA	$1,439	2.84%	$367,257	21
#47	Fort Worth, TX	$1,626	2.83%	$329,698	17
#48	Rochester, BY	$1,155	2.81%	$195,948	14
#49	Bakersfield, CA	$1,441	2.80%	$382,406	22
#50	Bryan, TX	$1,391	2.80%	$308,931	19
#51	Tampa, FL	$1,714	2.79%	$469,803	23
#52	Bradenton, FL	$2,127	2.79%	$598,838	23
#53	Memphis, TN	$1,070	2.77%	$291,388	23
#54	Gilbert, AZ	$2,075	2.77%	$512,192	21
#55	Greenville, SC	$1,354	2.77%	$376,419	23
#56	Durham, NC	$1,529	2.75%	$409,593	22
#57	Lubbock, TX	$1,356	2.74%	$303,650	19
#58	Colorado Springs, CO	$1,677	2.71%	$491,024	24
#59	Virginia Beach, VA	$1,602	2.69%	$420,409	22
#60	Anaheim, CA	$2,881	2.68%	$700,544	20
#61	Boca Raton, FL	$2,859	2.66%	$780,535	23
#62	Mesa, AZ	$1,644	2.65%	$430,697	22
#63	Sarasota, FL	$2,259	2.65%	$814,095	30
#64	Charleston, SC	$1,997	2.64%	$684,250	29
#65	Little Rock, AR	$1,222	2.61%	$333,575	23
#66	San Antonio, TX	$1,472	2.60%	$291,105	16
#67	Lexington, KY	$1,254	2.60%	$339,772	23
#68	Cincinnati, OH	$1,416	2.60%	$384,722	23
#69	Tulsa, OK	$1,244	2.60%	$433,481	29
#70	Fort Lauderdale, FL	$2,852	2.59%	$861,852	25
#71	Tallahassee, FL	$1,310	2.58%	$319,268	20
#72	Albuquerque, NM	$1,390	2.58%	$366,970	22
#73	Houston, TX	$1,833	2.49%	$421,473	19
#74	Fort Myers, FL	$1,597	2.48%	$423,367	22
#75	Dallas, TX	$1,983	2.47%	$519,132	22
#76	Phoenix, AZ	$1,635	2.43%	$507,572	26
#77	Scottsdale, AZ	$3,777	2.43%	$1,334,751	29
#78	Riverside, CA	$2,059	2.42%	$542,707	22
#79	Charlotte, NC	$1,741	2.38%	$474,017	23
#80	Charlottesville, VA	$2,047	2.35%	$578,479	24
#81	College Station, TX	$1,572	2.33%	$373,872	20
#82	Tucson, AZ	$1,202	2.30%	$343,730	24
#83	Denton, TX	$1,560	2.29%	$364,680	19
#84	Washington, DC	$2,525	2.28%	$693,343	23
#85	Raleigh, NC	$1,674	2.24%	$561,697	28
#86	Portland, OR	$2,211	2.05%	$647,146	24
#87	Las Vegas, NV	$1,413	2.04%	$502,640	30
#88	Henderson, NV	$1,699	2.02%	$688,114	34
#89	San Diego, CA	$2,608	2.00%	$838,965	27
#90	Madison, WI	$1,652	1.97%	$441,460	22
#91	Los Angeles, CA	$3,787	1.91%	$1,280,050	28
#92	Torrance, CA	$3,250	1.88%	$1,005,782	26
#93	Naples, FL	$2,133	1.83%	$861,141	34
#94	Spokane, WA	$1,159	1.80%	$356,947	26
#95	Long Beach, CA	$2,877	1.72%	$928,882	27
#96	Fresno, CA	$1,112	1.63%	$361,112	27
#97	Pasadena, CA	$3,732	1.54%	$1,416,826	32
#98	New York, NY	$2,499	1.37%	$947,448	32
#99	Austin, TX	$1,987	1.26%	$766,455	32
#100	Irvine, CA	$3,767	1.04%	$1,454,387	32

Next, we’ll look at condo and apartment cap rates by city in 2021:

Table 3: Traditional Cap Rates by City in 2021, Condos and Apartments

	City and State	Traditional Cap Rate	Traditional Rental Income	Median Property Price	Price to Rent Ratio
#1	Lake Worth, FL	5.35%	$1,352	$141,600	9
#2	Jupiter, FL	5.29%	$3,293	$446,865	11
#3	Houston, TX	4.73%	$1,346	$192,840	12
#4	Henderson, NV	4.62%	$1,319	$227,709	14
#5	Bradenton, FL	4.46%	$1,424	$224,232	13
#6	Baton Rouge, LA	4.37%	$1,046	$163,665	13
#7	Alexandria, VA	4.35%	$1,984	$460,595	19
#8	Plantation, FL	4.34%	$1,417	$163,901	10
#9	Clearwater, FL	4.21%	$1,718	$353,195	17
#10	College Station, TX	4.04%	$1,105	$152,638	12
#11	Tulsa, OK	3.92%	$902	$202,659	19
#12	Memphis, TN	3.85%	$1,218	$253,922	17
#13	Scottsdale, AZ	3.64%	$2,341	$503,686	18
#14	Orlando, FL	3.64%	$1,369	$211,917	13
#15	Tucson, AZ	3.57%	$1,003	$197,435	16
#16	Honolulu, HI	3.56%	$2,148	$717,308	28
#17	Gainesville, FL	3.51%	$946	$171,671	15
#18	Aurora, CO	3.50%	$1,411	$247,200	15
#19	Fayetteville, NC	3.36%	$982	$155,750	13
#20	Seattle, WA	3.18%	$2,224	$522,336	20
#21	Punta Gorda, FL	3.16%	$1,866	$356,322	16
#22	Indianapolis, IN	3.12%	$1,143	$323,955	24
#23	Colorado Springs, CO	3.10%	$1,092	$468,730	36
#24	Birmingham, AL	3.10%	$1,344	$308,539	19
#25	Las Vegas, NV	3.00%	$1,306	$464,357	30
#26	Baltimore, MD	2.95%	$1,947	$457,815	20
#27	Denver, CO	2.94%	$1,658	$353,450	18
#28	Washington, DC	2.80%	$2,180	$587,519	22
#29	West Palm Beach, FL	2.79%	$1,528	$222,727	12
#30	Jacksonville, FL	2.78%	$1,261	$267,118	18
#31	Hollywood, FL	2.69%	$2,367	$465,750	16
#32	Charleston, SC	2.69%	$1,722	$586,880	28
#33	Tampa, FL	2.67%	$1,992	$605,021	25
#34	Louisville, KY	2.66%	$1,084	$244,399	19
#35	Nashville, TN	2.62%	$1,405	$471,240	28
#36	Arlington, VA	2.59%	$2,034	$570,701	23
#37	Arlington, TX	2.56%	$935	$132,069	12
#38	Mesa, AZ	2.51%	$1,054	$199,607	16
#39	Irving, TX	2.48%	$1,663	$256,653	13
#40	Boca Raton, FL	2.47%	$1,796	$491,287	23
#41	Sarasota, FL	2.47%	$2,314	$767,986	28
#42	Philadelphia, PA	2.42%	$1,602	$505,466	26
#43	Atlanta, GA	2.42%	$1,973	$440,050	19
#44	Pompano Beach, FL	2.40%	$1,792	$325,755	15
#45	Fort Wayne, IN	2.36%	$1,076	$246,769	19
#46	Riverside, CA	2.32%	$1,662	$331,374	17
#47	Fresno, CA	2.31%	$809	$201,108	21
#48	Richmond, VA	2.29%	$1,358	$368,920	23
#49	Raleigh, NC	2.27%	$1,392	$385,522	23
#50	Anaheim, CA	2.20%	$2,133	$456,510	18
#51	Torrance, CA	2.10%	$2,290	$495,556	18
#52	Boulder, CO	2.04%	$1,894	$523,587	23
#53	Tallahassee, FL	2.03%	$931	$194,070	17
#54	Tempe, AZ	1.98%	$1,335	$301,280	19
#55	Evanston, IL	1.98%	$1,778	$296,839	14
#56	Durham, NC	1.96%	$1,113	$370,319	28
#57	Madison, WI	1.95%	$1,169	$349,915	25
#58	Columbus, OH	1.92%	$1,265	$270,501	18
#59	Miami, FL	1.90%	$2,625	$613,982	19
#60	Fort Myers, FL	1.89%	$1,344	$244,993	15
#61	Stamford, CT	1.88%	$2,081	$407,599	16
#62	Glendale, CA	1.88%	$2,444	$640,972	22
#63	Cleveland, OH	1.81%	$1,532	$335,879	18
#64	Jersey City, NJ	1.80%	$2,236	$609,423	23
#65	Austin, TX	1.76%	$1,720	$441,330	21
#66	Los Angeles, CA	1.73%	$2,889	$838,119	24
#67	Fort Lauderdale, FL	1.65%	$2,527	$616,354	20
#68	Chattanooga, TN	1.60%	$1,299	$341,655	22
#69	Irvine, CA	1.53%	$3,049	$847,136	23
#70	San Francisco, CA	1.49%	$3,970	$1,239,293	26
#71	St. Louis, MO	1.49%	$1,087	$232,127	18
#72	San Diego, CA	1.48%	$2,432	$804,033	28
#73	Bloomington, IN	1.43%	$1,181	$422,884	30
#74	Portland, OR	1.43%	$1,923	$482,233	21
#75	Long Beach, CA	1.42%	$1,963	$534,679	23
#76	Oakland, CA	1.40%	$2,422	$661,197	23
#77	Providence, RI	1.40%	$1,738	$344,512	17
#78	Tuscaloosa, AL	1.39%	$794	$333,514	35
#79	Dallas, TX	1.38%	$1,554	$345,211	19
#80	Phoenix, AZ	1.38%	$1,224	$361,481	25
#81	Pensacola, FL	1.38%	$2,611	$1,014,816	32
#82	Pasadena, CA	1.31%	$2,767	$909,432	27
#83	Grand Rapids, MI	1.30%	$1,040	$380,740	31
#84	Charlotte, NC	1.25%	$1,595	$511,671	27
#85	Minneapolis, MN	1.25%	$1,882	$374,596	17
#86	Dearborn, MI	1.25%	$1,095	$173,737	13
#87	Miami Beach, FL	1.19%	$2,520	$822,869	27
#88	Chicago, IL	1.18%	$2,057	$472,130	19
#89	San Jose, CA	1.16%	$2,447	$701,859	24
#90	Naples, FL	1.13%	$1,893	$540,288	24
#91	Lexington, KY	1.13%	$1,017	$372,269	30
#92	Greenville, SC	1.11%	$1,442	$588,986	34
#93	Boston, MA	1.07%	$2,459	$884,452	30
#94	Knoxville, TN	1.05%	$1,197	$407,144	28
#95	Cincinnati, OH	1.01%	$1,126	$237,517	18
#96	Reno, NV	1.01%	$1,047	$280,731	22
#97	Fort Worth, TX	1%	$1,689	$363,662	18
#98	New York, NY	0.97%	$2,940	$1,231,468	35
#99	Detroit, MI	0.76%	$1,384	$278,551	17
#100	Corpus Christi, TX	0.51%	$1,022	$179,568	15

Third on our list is return on investment for traditional rental properties when it comes to townhouses:

Table 4: Traditional Cap Rates by City in 2021, Townhouses

	City and State	Traditional Cap Rate	Traditional Rental Income	Median Property Price	Price to Rent Ratio
#1	Houston, TX	4.73%	$1,346	$192,840	12
#2	Greenville, NC	4.73%	$1,260	$171,553	11
#3	Baltimore, MD	4.71%	$1,613	$258,024	13
#4	Alexandria, WA	4.35%	$1,984	$460,595	19
#5	Lake Worth, FL	4.18%	$1,685	$234,690	12
#6	Falls Church, VA	4.13%	$1,746	$303,882	15
#7	Sandy Springs, GA	4.10%	$1,750	$258,947	12
#8	College Station, TX	4.04%	$1,105	$152,638	12
#9	Baton Rouge, LA	3.98%	$1,143	$202,319	15
#10	Miami, FL	3.97%	$2,576	$448,003	14
#11	Birmingham, AL	3.90%	$1,327	$291,552	18
#12	Gainesville, FL	3.75%	$1,068	$187,031	15
#13	Philadelphia, PA	3.71%	$1,456	$331,702	19
#14	Jupiter, FL	3.70%	$3,026	$518,476	14
#15	Scottsdale, AZ	3.69%	$2,631	$625,385	20
#16	Bryan, TX	3.69%	$1,175	$216,975	15
#17	Frederick, MD	3.60%	$2,113	$372,485	15
#18	Naples, FL	3.59%	$1,951	$349,033	15
#19	Clearwater, FL	3.48%	$1,960	$336,174	14
#20	Las Vegas, NV	3.43%	$1,160	$262,441	19
#21	Tallahassee, FL	3.43%	$939	$175,137	16
#22	Chandler, AZ	3.42%	$1,773	$331,131	16
#23	Brookhaven, GA	3.41%	$1,858	$282,867	13
#24	Shreveport, LA	3.38%	$950	$161,398	14
#25	Jacksonville, FL	3.35%	$1,230	$213,818	14
#26	Fort Myers, FL	3.35%	$1,380	$214,097	13
#27	Nashville, TN	3.30%	$1,536	$360,246	20
#28	Raleigh, NC	3.28%	$1,413	$373,544	22
#29	Smyrna, GA	3.26%	$1,560	$293,948	16
#30	Hollywood, FL	3.24%	$3,145	$546,355	14
#31	Henderson, NV	3.20%	$1,403	$375,043	22
#32	Sarasota, FL	3.16%	$2,572	$573,955	19
#33	Silver Spring, MD	3.16%	$2,095	$425,561	17
#34	Laurel, MD	3.12%	$1,968	$388,495	16
#35	San Bernardino, CA	3.06%	$1,234	$177,400	12
#36	Prescott, AZ	3.06%	$1,576	$320,908	17
#37	Mesa, AZ	2.96%	$1,379	$257,597	16
#38	Gilbert, AZ	2.96%	$1,618	$320,561	17
#39	Aurora, IL	2.80%	$1,495	$235,829	13
#40	Stuart, FL	2.77%	$1,635	$561,975	29
#41	Orlando, FL	2.76%	$1,668	$310,443	16
#42	Norfolk, VA	2.72%	$1,205	$364,247	25
#43	Tucson, AZ	2.71%	$991	$245,110	21
#44	Colorado Springs, CO	2.65%	$1,423	$383,513	22
#45	Tempe, AZ	2.65%	$1,418	$289,485	17
#46	Oxnard, CA	2.63%	$2,891	$573,071	17
#47	Sacramento, CA	2.60%	$1,401	$374,355	22
#48	Arlington, VA	2.59%	$2,034	$570,701	23
#49	Arlington, TX	2.56%	$935	$132,069	12
#50	Madison, WI	2.52%	$1,185	$271,450	19
#51	Irving, TX	2.48%	$1,663	$256,653	13
#52	Boca Raton, FL	2.47%	$2,596	$616,304	20
#53	Phoenix, AZ	2.43%	$1,391	$353,090	21
#54	Carrollton, TX	2.43%	$1,361	$222,654	14
#55	Atlanta, GA	2.42%	$1,973	$440,050	19
#56	West Palm Beach, FL	2.41%	$1,580	$260,833	14
#57	Tampa, FL	2.37%	$1,925	$442,938	19
#58	Fort Collins, CO	2.33%	$1,725	$418,438	20
#59	Riverside, CA	2.32%	$1,662	$331,374	17
#60	Fresno, CA	2.31%	$809	$201,108	21
#61	Ventura, CA	2.30%	$2,213	$452,275	17
#62	Richmond, VA	2.29%	$1,358	$368,920	23
#63	Fort Lauderdale, FL	2.22%	$2,902	$733,377	21
#64	Durham, NC	2.20%	$1,382	$430,264	26
#65	Anaheim, CA	2.20%	$2,133	$456,510	18
#66	Plantation, FL	2.15%	$1,710	$307,539	15
#67	Washington, DC	2.14%	$3,049	$955,190	26
#68	Torrance, CA	2.10%	$2,290	$495,556	18
#69	Chula Vista, CA	2.06%	$1,864	$411,791	18
#70	Fremont, CA	2.00%	$2,508	$595,136	20
#71	Rockville, MD	2%	$2,671	$737,589	23
#72	Seattle, WA	1.96%	$2,314	$594,955	21
#73	Glendale, CA	1.88%	$2,444	$640,972	22
#74	Reno, NV	1.79%	$1,226	$360,537	25
#75	Austin, TX	1.76%	$1,720	$441,330	21
#76	Charlottesville, VA	1.76%	$1,315	$425,609	27
#77	Los Angeles, CA	1.73%	$2,889	$838,119	24
#78	Decatur, GA	1.70%	$1,359	$205,097	13
#79	New York, NY	1.63%	$2,276	$752,555	28
#80	Lewisville, TX	1.62%	$1,737	$339,993	16
#81	Chicago, IL	1.61%	$2,482	$616,455	21
#82	Chattanooga, TN	1.58%	$1,350	$432,753	27
#83	Minneapolis, MN	1.56%	$1,770	$418,000	20
#84	Irvine, CA	1.53%	$3,049	$847,136	23
#85	San Francisco, CA	1.49%	$3,970	$1,239,293	26
#86	Portland, OR	1.49%	$2,002	$599,037	25
#87	San Diego, CA	1.48%	$2,432	$804,033	28
#88	Pompano Beach, FL	1.43%	$2,177	$480,464	18
#89	Long Beach, CA	1.42%	$1,963	$534,679	23
#90	Oakland, CA	1.40%	$2,422	$661,197	23
#91	Dallas, TX	1.38%	$1,554	$345,211	19
#92	Pasadena, CA	1.31%	$2,767	$909,432	27
#93	Albany, NY	1.20%	$1,242	$277,679	19
#94	Lincoln, NE	1.17%	$1,159	$356,495	26
#95	San Jose, CA	1.16%	$2,447	$701,859	24
#96	Wilmington, NC	1.09%	$1,037	$279,950	23
#97	Fort Worth, TX	1%	$1,689	$363,662	18
#98	Bend, OR	0.74%	$1,737	$619,575	30
#99	San Mateo, CA	0.60%	$3,138	$975,974	26
#100	Boise, ID	0.27%	$874	$433,971	41

If you already have some experience in residential real estate investing, you might be thinking about branching out into multi-family homes in 2021. So, let’s take a look at what capitalization rate this property type offers in the 2021 US housing market. While looking at the real estate data and analysis below, please keep in mind that Mashvisor focuses on small multi-family real estate properties such as duplexes, triplexes, fourplexes, etc.

Table 5: Traditional Cap Rates by City in 2021, Multi-Family Real Estate Properties

	City and State	Traditional Cap Rate	Traditional Rental Income	Median Property Price	Price to Rent Ratio
#1	Camden, NJ	6.90%	$1,325	$139,541	9
#2	Naples, FL	5.44%	$3,428	$535,584	13
#3	Cleveland, OH	5.32%	$852	$121,358	12
#4	Portsmouth, VA	5.31%	$1,276	$181,827	12
#5	Rochester, NY	5.12%	$1,036	$144,707	12
#6	Akron, OH	4.95%	$868	$118,546	11
#7	Detroit, MI	4.91%	$978	$191,859	16
#8	Fort Wayne, IN	4.90%	$669	$105,282	13
#9	Aurora, IL	4.71%	$1,615	$220,160	11
#10	Baltimore, MD	4.66%	$1,686	$310,832	15
#11	Cincinnati, OH	4.63%	$1,342	$225,933	14
#12	Buffalo, NY	4.54%	$983	$162,720	14
#13	Syracuse, NY	4.45%	$1,016	$149,243	12
#14	Kalamazoo, MI	4.45%	$1,367	$309,464	19
#15	Fort Myers, FL	4.31%	$1,717	$319,086	15
#16	Grand Rapids, MI	4.24%	$1,279	$238,739	16
#17	Indianapolis, IN	4.17%	$884	$156,885	15
#18	Fort Pierce, FL	4.05%	$1,402	$258,478	15
#19	Tallahassee, FL	3.83%	$1,454	$335,078	19
#20	Memphis, TN	3.73%	$994	$200,969	17
#21	Trenton, NJ	3.70%	$1,615	$250,470	13
#22	Louisville, KY	3.67%	$1,184	$292,190	21
#23	Knoxville, TN	3.67%	$1,272	$306,089	20
#24	Bakersfield, CA	3.66%	$2,946	$474,491	13
#25	Norfolk, VA	3.64%	$1,340	$272,130	17
#26	Chattanooga, TN	3.55%	$1,097	$214,693	16
#27	Anaheim, CA	3.50%	$7,205	$1,511,016	17
#28	Long Beach, CA	3.32%	$6,380	$1,380,501	18
#29	St. Louis, MO	3.30%	$932	$234,704	21
#30	Riverside, CA	3.29%	$3,139	$875,205	23
#31	Troy, NY	3.18%	$1,082	$187,676	14
#32	San Bernardino, CA	3.17%	$2,711	$530,621	16
#33	Albany, NY	3.15%	$1,298	$215,449	14
#34	Orlando, FL	3.13%	$1,404	$374,344	22
#35	Jacksonville, FL	3.06%	$1,220	$274,900	19
#36	Fayetteville, NC	3.02%	$1,008	$239,621	20
#37	Corona, CA	3.01%	$2,843	$653,769	19
#38	Pittsburgh, PA	2.92%	$1,141	$311,488	23
#39	Philadelphia, PA	2.84%	$1,419	$441,905	26
#40	Tampa, FL	2.83%	$1,460	$356,650	20
#41	Kansas City, MO	2.81%	$1,077	$311,269	24
#42	Dearborn, MI	2.77%	$1,025	$190,433	15
#43	Charlotte, NC	2.74%	$1,351	$497,868	31
#44	Bloomington, IN	2.74%	$1,439	$443,287	26
#45	Pensacola, FL	2.74%	$1,264	$402,571	27
#46	Milwaukee, WI	2.69%	$878	$173,881	17
#47	Schenectady, NY	2.69%	$1,125	$161,288	12
#48	Torrance, CA	2.60%	$4,768	$1,115,384	20
#49	El Paso, TX	2.57%	$1,240	$255,715	17
#50	Tucson, AZ	2.56%	$1,134	$282,882	21
#51	Pasadena, CA	2.54%	$6,290	$1,679,960	22
#52	Little Rock, AR	2.54%	$770	$270,400	29
#53	Lubbock, TX	2.54%	$1,232	$237,368	16
#54	Roanoke, VA	2.53%	$983	$285,272	24
#55	West Palm Beach, FL	2.43%	$1,609	$382,650	20
#56	Corpus Christi, TX	2.40%	$1,321	$443,682	28
#57	Fresno, CA	2.27%	$1,596	$389,205	20
#58	Chicago, IL	2.26%	$2,015	$627,498	26
#59	Nashville, TN	2.26%	$1,483	$441,458	25
#60	Columbus, OH	2.23%	$1,288	$370,980	24
#61	Dallas, TX	2.16%	$2,181	$614,322	23
#62	Ventura, CA	2.16%	$3,138	$870,722	23
#63	Fort Lauderdale, FL	2.15%	$2,177	$683,723	26
#64	Las Vegas, NV	2.11%	$1,206	$375,665	26
#65	New Orleans, LA	2.07%	$1,688	$559,330	28
#66	Los Angeles, CA	2.06%	$4,164	$1,210,829	24
#67	Clearwater, Fl	2.03%	$1,528	$497,414	27
#68	Miami, FL	1.96%	$2,039	$620,852	25
#69	College Station, TX	1.96%	$1,577	$482,069	25
#70	Sarasota, FL	1.96%	$6,001	$1,802,250	25
#71	Fort Worth, TX	1.94%	$1,578	$540,087	29
#72	San Diego, CA	1.90%	$3,803	$1,238,902	27
#73	Minneapolis, MN	1.88%	$1,534	$434,005	24
#74	Glendale, CA	1.88%	$5,406	$1,637,200	25
#75	Oakland, CA	1.88%	$3,049	$1,042,267	28
#76	Atlanta, GA	1.83%	$1,962	$715,100	30
#77	Bryan, TX	1.83%	$1,687	$515,450	25
#78	Gainesville, FL	1.77%	$1,352	$510,629	31
#79	Lake Worth, FL	1.65%	$1,555	$477,240	26
#80	San Francisco, CA	1.55%	$5,784	$2,293,937	33
#81	Providence, RI	1.54%	$1,443	$397,360	23
#82	Richmond, VA	1.53%	$1,480	$529,594	30
#83	Madison, WI	1.44%	$1,541	$570,938	31
#84	San Antonio, TX	1.39%	$1,237	$345,499	23
#85	Phoenix, AZ	1.37%	$1,452	$777,815	45
#86	Albuquerque, NM	1.21%	$1,056	$404,446	32
#87	Reno, NV	1.16%	$1,490	$697,982	39
#88	North Bergen, NJ	1.10%	$2,127	$641,696	25
#89	Houston, TX	1.09%	$1,413	$560,492	33
#90	Jersey City, NJ	1.03%	$2,030	$816,248	34
#91	Charleston, SC	1.01%	$2,076	$1,153,999	46
#92	San Jose, CA	0.79%	$3,475	$1,341,729	32
#93	Tempe, AZ	0.77%	$1,315	$717,086	45
#94	Denton, TX	0.76%	$1,523	$744,525	41
#95	Honolulu, HI	0.66%	$2,842	$1,775,184	52
#96	Austin, TX	0.66%	$1,541	$572,363	31
#97	New York, NY	0.59%	$2,319	$1,317,502	47
#98	Miami Beach, FL	0.41%	$2,511	$1,535,733	51
#99	Washington, DC	0.40%	$2,227	$1,403,254	53
#100	Portland, OR	0.38%	$1,969	$1,393,150	59

If you’re interested in buying a multi-family property to rent out on a long-term basis, find out the 12 best multifamily markets for 2021.

While foreclosures are not really a property type, they are real estate listings which deserve their own categorization in our analysis of the best places to invest in real estate in 2021. Buying a foreclosed home comes with a couple of important benefits compared to other rental properties for sale. First and foremost, foreclosed homes are usually sold below market value, which makes them more profitable as investment properties. Second, they experience less competition from investors, which means that you will have more bargaining power as a property buyer. So, let’s have a look at what rate of return foreclosures are expected to bring this year:

Table 6: Traditional Cap Rates by City in 2021, Foreclosed Homes

	City and State	Traditional Cap Rate	Traditional Rental Income	Median Property Price	Price to Rent Ratio
#1	Detroit, MI	6.95%	$680	$74,545	9
#2	New Orleans, LA	6.62%	$1,444	$177,750	10
#3	Mobile, AL	5.87%	$888	$127,475	12
#4	Aurora, IL	5.76%	$1,570	$192,863	10
#5	Akron, OH	5.76%	$838	$104,750	10
#6	Memphis, TN	5.75%	$914	$125,433	11
#7	Cleveland, OH	5.37%	$846	$103,000	10
#8	Lakeland, FL	5.36%	$1,332	$198,500	12
#9	Columbia, SC	5.20%	$1,062	$144,850	11
#10	Hollywood, FL	5.18%	$1,619	$181,799	9
#11	Trenton, NJ	5.16%	$1,555	$204,573	11
#12	Baltimore, MD	5.08%	$1,462	$210,024	12
#13	Indianapolis, IN	4.93%	$988	$161,738	14
#14	Richmond, VA	4.78%	$1,479	$237,188	13
#15	Anchorage, AK	4.65%	$1,738	$265,333	13
#16	Jackson, MS	4.60%	$1,216	$216,300	15
#17	Columbus, OH	4.53%	$995	$169,111	14
#18	Philadelphia, PA	4.28%	$1,351	$244,400	15
#19	Toledo, OH	4.28%	$919	$146,500	13
#20	Bradenton, FL	4.26%	$1,728	$255,000	12
#21	Dayton, OH	4.22%	$943	$137,300	12
#22	Columbus, GA	4.09%	$937	$163,500	15
#23	Houston, TX	4.07%	$1,422	$229,438	13
#24	Miami, FL	3.98%	$2,229	$412,811	15
#25	Atlanta, GA	3.97%	$3,295	$661,182	17
#26	Syracuse, NY	3.96%	$1,057	$144,975	11
#27	San Bernardino, CA	3.94%	$1,647	$343,750	17
#28	Birmingham, AL	3.93%	$956	$169,385	15
#29	Fort Myers, FL	3.93%	$1,458	$245,790	14
#30	Milwaukee, WI	3.87%	$947	$146,095	13
#31	Orlando, FL	3.83%	$1,435	$273,263	16
#32	Gainesville, FL	3.82%	$1,084	$191,600	15
#33	Minneapolis, MN	3.72%	$1,485	$257,944	14
#34	Pensacola, FL	3.71%	$1,244	$213,250	14
#35	Jacksonville, FL	3.67%	$1,248	$230,045	15
#36	Buffalo, NY	3.67%	$1,273	$182,800	12
#37	Denver, Co	3.63%	$1,785	$403,677	19
#38	Wichita, KS	3.56%	$867	$153,029	15
#39	Saint Petersburg, FL	3.51%	$1,233	$252,286	17
#40	Gilbert, AZ	3.50%	$2,095	$437,733	17
#41	Chicago, IL	3.43%	$1,382	$233,960	14
#42	Lexington, KY	3.40%	$1,207	$221,333	15
#43	Boca Raton, FL	3.38%	$2,639	$518,638	16
#44	Rochester, NY	3.36%	$961	$132,450	11
#45	Seattle, WA	3.36%	$3,659	$875,000	20
#46	Baton Rouge, LA	3.35%	$766	$170,400	19
#47	Little Rock, AR	3.34%	$776	$174,164	19
#48	Abilene, TX	3.32%	$1,228	$217,333	15
#49	Colorado Springs, CO	3.29%	$1,620	$353,789	18
#50	Albuquerque, NM	3.28%	$1,150	$231,304	17
#51	Henderson, NV	3.28%	$1,545	$428,000	23
#52	Pittsburgh, PA	3.25%	$1,118	$240,421	18
#53	North Bergen, NJ	3.21%	$2,292	$510,750	19
#54	Las Vegas, NV	3.19%	$1,467	$405,774	23
#55	Aurora, CO	3.16%	$1,767	$398,057	19
#56	Vancouver, WA	3.14%	$1,673	$373,500	19
#57	Washington, DC	3.06%	$1,828	$381,767	17
#58	Mesa, AZ	3.04%	$1,436	$337,083	20
#59	Riverside, CA	3.04%	$2,127	$470,547	18
#60	Anaheim, CA	3.04%	$3,117	$769,000	21
#61	Bakersfield, CA	3.02%	$1,414	$295,994	17
#62	Pompano Beach, FL	3.02%	$1,393	$262,700	16
#63	Nashville, TN	2.98%	$1,474	$330,000	19
#64	Phoenix, AZ	2.97%	$1,299	$308,956	20
#65	Chandler, AZ	2.96%	$1,685	$392,600	19
#66	San Antonio, TX	2.96%	$1,228	$238,667	16
#67	Tallahassee, FL	2.96%	$1,227	$299,133	20
#68	Jersey City, NJ	2.92%	$2,228	$501,747	19
#69	Plantation, FL	2.91%	$2,200	$480,557	18
#70	Tulsa, OK	2.90%	$877	$181,455	17
#71	Tucson, AZ	2.89%	$1,088	$254,747	20
#72	Tampa, FL	2.87%	$1,458	$305,333	17
#73	Knoxville, TN	2.67%	$928	$291,000	26
#74	Kalamazoo, MI	2.63%	$1,191	$227,333	16
#75	Cincinnati, OH	2.55%	$1,029	$213,714	17
#76	San Diego, CA	2.52%	$2,667	$677,726	21
#77	Lake Worth, FL	2.50%	$1,413	$295,492	17
#78	Stockton, CA	2.47%	$1,513	$344,167	19
#79	Fort Collins, CO	2.45%	$1,393	$422,667	25
#80	Silver Spring, MD	2.45%	$1,638	$432,667	22
#81	Los Angeles, CA	2.33%	$3,093	$948,573	26
#82	Sarasota, FL	2.24%	$1,952	$516,250	22
#83	Sacramento, CA	2.12%	$1,496	$398,857	22
#84	Schenectady, NY	2.11%	$1,108	$193,533	15
#85	Fresno, CA	2.03%	$877	$244,300	23
#86	Spokane, WA	2.03%	$948	$265,750	23
#87	Louisville, KY	1.99%	$810	$220,667	23
#88	Tempe, AZ	1.99%	$1,711	$521,333	25
#89	New York, NY	1.95%	$2,148	$644,089	25
#90	Dothan, AL	1.71%	$914	$297,450	27
#91	Chattanooga, TN	1.66%	$899	$256,500	24
#92	Long Beach, CA	1.65%	$2,412	$761,143	26
#93	Oakland, CA	1.65%	$3,853	$1,244,200	27
#94	Portland, OR	1.44%	$1,623	$381,400	20
#95	Grand Rapids, MI	1.37%	$836	$231,400	23
#96	Tacoma, WA	1.30%	$1,150	$366,286	27
#97	Fort Lauderdale, FL	1.24%	$2,818	$710,688	21
#98	San Jose, CA	1.21%	$3,093	$1,141,857	31
#99	Miami Beach, FL	0.98%	$2,473	$493,400	17
#100	Naples, FL	0.42%	$1,371	$525,986	32

Traditional Rentals Capitalization Rate Data by Property Type: Summary

Single-Family Homes for Sale in 2021

• Single-Family Home Cap Rate by City Range: From 1.04% to 4.94%
• Highest Single-Family Home Cap Rate: Detroit real estate market, 4.94%
• Lowest Single-Family Home Cap Rate: Irvine real estate market, 1.04%

Condos and Apartments for Sale in 2021

• Condo and Apartment Cap Rate by City Range: From 0.51% to 5.35%
• Highest Condo and Apartment Cap Rate: Lake Worth real estate market, 5.35%
• Lowest Condo and Apartment Cap Rate: Corpus Christi real estate market, 0.51%

Townhouses for Sale in 2021

• Townhouse Cap Rate by City Range: From 0.27% to 4.73%
• Highest Townhouse Cap Rate: Houston real estate market, 4.73%
• Lowest Townhouse Cap Rate: Boise real estate market, 0.27%

Multi-Family Homes for Sale in 2021

• Multi-Family Home Cap Rate by City Range: From 0.38% to 6.90%
• Highest Multi-Family Home Cap Rate: Camden real estate market, 6.90%
• Lowest Multi-Family Home Cap Rate: Portland real estate market, 0.38%

Foreclosures for Sale in 2021

• Foreclosure Cap Rate by City Range: From 0.42% to 6.95%
• Highest Foreclosure Cap Rate: Detroit real estate market, 6.95%
• Lowest Foreclosure Cap Rate: Naples real estate market, 0.42%

2021 Cap Rates by Neighborhood

As you might have already heard many times, location is arguably the most important factor when deciding where to invest in real estate. This includes the best places for long-term rental markets. However, location is not limited to the real estate market only but includes the specific area within the market as well.

As a matter of fact, neighborhoods within the same city can offer drastically different capitalization rates. That’s why it is not enough to look at the 2021 cap rates by city to choose where to buy a rental property. You also need to consider the area.

No worries, this doesn’t mean that you need to conduct tedious rental market analysis over dozens of different areas to select the most profitable one. You can use Mashvisor’s real estate heatmap to perform neighborhood analysis quickly and effortlessly.

While this tool does not show real estate cap rate explicitly, there are two ways in which you can get a close approximation to this metric at the neighborhood level.

First, you can search for areas with low listings price (marked in red) and high traditional rental income (marked in green).

Second, you can use the traditional cash on cash return measure which is very similar to the cap rate calculation when you don’t take into account the method of financing.

Mashvisor’s Real Estate Heatmap

What Is Cap Rate in Real Estate?

Cap Rate Definition

Cap Rate = Net Operating Income/Current Market Value = NOI/CMV

What Is Cash on Cash Return in Real Estate?

Cash on Cash Return Definition

Cash on Cash Return = Annual Before-Tax Cash Flow/Total Cash Invested

2021 Cap Rates by Traditional Rental Property

Similarly to the differences between areas within the same city, there exist major discrepancies between investment properties for sale within the same neighborhood. In order to guarantee yourself a profitable real estate investment, you have to conduct rental property analysis before buying.

One of the fastest and most accurate ways to perform investment property analysis is to use a cap rate calculator, like the one available on our platform. Mashvisor’s cap rate calculator provides you with an accurate estimation of the cap rate which you can expect to generate from any residential property in the US market. Our estimations are based on nationwide real estate data and traditional rental comps. We compare your selected property to dozens of comparable properties in the area to tell you what return you can expect from it.

That’s not all. Mashvisor functions as a comprehensive investment property calculator which provides you with a number of other metrics as well:

• Listing price
• One-time startup costs
• Traditional rental income
• Recurring monthly expenses
• Cash flow
• Occupancy rate
• Traditional cash on cash return
• Traditional cal rate (of course!)

Mashvisor’s Investment Property Calculator

With the help of our real estate investment tools, you don’t need to worry about what does cap rate mean and how to calculate cap rate. You get readily available calculations for all properties listed on our platform as well as any other property whose address you enter.

One thing though that you have to worry about is what is a good cap rate for long-term rentals properties. Unlike most real estate investment questions, this one has a very straightforward answer. A good cap rate is usually between 8% and 12%. Although the capitalization rate shows how much profit you will make from a property, you don’t want it to be too high as it is also a measure of the risk involved in investing in a certain traditional rental.

Knowing what traditional cap rates by city to expect in 2021 is a great place to start when planning to buy a long-term rental property. While profitable investment opportunities are available across the US housing market, it is much easier to find a top-performing property in one of these best places for investing.

To speed up your investment property search and analysis, sign up for Mashvisor now. We will help you turn 3 months of research into 15 minutes.