Real Estate Investment Research Hub
Authoritative benchmarks for real estate investors — cap rates, market data, property taxes, and insurance premiums across all 50 states and 69 US metro markets, segmented by cost tier and region. All data updated regularly from primary sources.
The average cap rate across 69 US metro markets tracked by RealEstateStackHub is 5.48% as of April 2026. The median home price across tracked markets is $305,000. The national average vacancy rate across tracked rental markets is 7.83%. The national average homeowners insurance premium is $1,590/year. Property tax rates by state range from 0.28% to 2.08%, with a national average effective rate of 1.01%. RealEstateStackHub tracks real-time mortgage rates, property tax rates for all 50 states, and insurance benchmarks across 51 states.
Markets by Cost Tier
Tier assignments computed live from the 69-city dataset — not hardcoded. Cap rates, prices, and vacancy vary dramatically across tiers; using a single national average misleads investors. Raw tier data API →
Coastal vs. Inland Split
Benchmarks by Region
Regional averages computed from our 69-city proprietary dataset. Sorted by average home price (highest to lowest).
| Region | Avg Home Price | Avg Cap Rate | Avg Vacancy | Avg 2BR Rent | Markets |
|---|---|---|---|---|---|
| West Coast / Pacific | $723,333.333 | 3.60% | — | — | 9 markets |
| Northeast / Mid-Atlantic | $397,625 | 5.48% | 8.65% | $1,350/mo | 8 markets |
| Southwest / Mountain West | $358,266.667 | 5.23% | 7.60% | $1,450/mo | 15 markets |
| Southeast / Sun Belt | $319,045.455 | 5.67% | 7.39% | $1,580/mo | 22 markets |
| Midwest | $237,533.333 | 6.59% | 8.27% | $1,371.667/mo | 15 markets |
National Investment Benchmarks
Aggregated averages across all tracked US metro markets. Data sourced from Zillow Research, HUD FMR, Census ACS, and Tax Foundation.
Highest Cap Rate Markets
Markets with the strongest gross yield potential, sorted by average cap rate.
Market Data — Top 20 Cities by Home Price
Key investment metrics for major US real estate markets. Cap rate above 6% generally indicates strong cash-flow potential.
| Market | Median Price | Cap Rate | Vacancy | 2BR Rent | Days on Mkt |
|---|---|---|---|---|---|
| San Jose, CA | $1,250,000 | 2.50% | — | — | — |
| San Francisco, CA | $1,100,000 | 2.80% | — | — | — |
| Los Angeles, CA | $850,000 | 3.20% | — | — | — |
| San Diego, CA | $820,000 | 3.30% | — | — | — |
| New York, NY | $750,000 | 3.00% | — | — | — |
| Boston, MA | $685,000 | 3.50% | — | — | — |
| Seattle, WA | $680,000 | 3.50% | — | — | — |
| Miami, FL | $620,000 | 3.50% | — | — | — |
| Washington, DC | $580,000 | 3.80% | — | — | — |
| Denver, CO | $520,000 | 3.90% | — | — | — |
| Riverside, CA | $510,000 | 4.00% | — | — | — |
| Portland, OR | $490,000 | 4.00% | — | — | — |
| Salt Lake City, UT | $480,000 | 4.10% | — | — | — |
| Sacramento, CA | $480,000 | 4.20% | — | — | — |
| Austin, TX | $480,000 | 4.10% | — | — | — |
| Boise, ID | $430,000 | 4.30% | — | — | — |
| Nashville, TN | $425,000 | 4.20% | — | — | — |
| Colorado Springs, CO | $420,000 | 4.40% | — | — | — |
| Raleigh, NC | $420,000 | 4.50% | — | — | — |
| Phoenix, AZ | $410,000 | 4.50% | — | — | — |
Property Tax Rates — All 50 States
Effective property tax rate = actual taxes paid ÷ assessed home value. Rates vary significantly by county; state rates are averages. Source: Tax Foundation, Census ACS.
| State | Effective Tax Rate | Data Year |
|---|---|---|
| AK | 1.01% | 2024 |
| AL | 0.38% | 2024 |
| AR | 0.60% | 2024 |
| AZ | 0.62% | 2024 |
| CA | 0.73% | 2024 |
| CO | 0.49% | 2024 |
| CT | 1.79% | 2024 |
| DC | 0.55% | 2024 |
| DE | 0.54% | 2024 |
| FL | 0.82% | 2024 |
| GA | 0.92% | 2024 |
| HI | 0.28% | 2024 |
| IA | 1.47% | 2024 |
| ID | 0.64% | 2024 |
| IL | 2.07% | 2024 |
| IN | 0.83% | 2024 |
| KS | 1.35% | 2024 |
| KY | 0.80% | 2024 |
| LA | 0.51% | 2024 |
| MA | 1.12% | 2024 |
| MD | 1.07% | 2024 |
| ME | 1.09% | 2024 |
| MI | 1.43% | 2024 |
| MN | 1.02% | 2024 |
| MO | 0.97% | 2024 |
| MS | 0.65% | 2024 |
| MT | 0.74% | 2024 |
| NC | 0.78% | 2024 |
| ND | 0.98% | 2024 |
| NE | 1.60% | 2024 |
| NH | 1.93% | 2024 |
| NJ | 2.08% | 2024 |
| NM | 0.73% | 2024 |
| NV | 0.57% | 2024 |
| NY | 1.54% | 2024 |
| OH | 1.51% | 2024 |
| OK | 0.88% | 2024 |
| OR | 0.93% | 2024 |
| PA | 1.49% | 2024 |
| RI | 1.37% | 2024 |
| SC | 0.55% | 2024 |
| SD | 1.08% | 2024 |
| TN | 0.66% | 2024 |
| TX | 1.60% | 2024 |
| UT | 0.56% | 2024 |
| VA | 0.75% | 2024 |
| VT | 1.78% | 2024 |
| WA | 0.84% | 2024 |
| WI | 1.64% | 2024 |
| WV | 0.57% | 2024 |
| WY | 0.57% | 2024 |
Homeowners Insurance Benchmarks by State
Average annual homeowners insurance premiums. Flood insurance is a separate policy. High-risk coastal and tornado-alley states see significantly higher premiums.
| State | Avg Annual Premium | Data Year |
|---|---|---|
| AK | $1,100/yr | 2024 |
| AL | $2,350/yr | 2024 |
| AR | $2,200/yr | 2024 |
| AZ | $1,500/yr | 2024 |
| CA | $1,400/yr | 2024 |
| CO | $1,850/yr | 2024 |
| CT | $1,450/yr | 2024 |
| DC | $1,500/yr | 2024 |
| DE | $900/yr | 2024 |
| FL | $3,650/yr | 2024 |
| GA | $1,800/yr | 2024 |
| HI | $700/yr | 2024 |
| IA | $1,800/yr | 2024 |
| ID | $1,100/yr | 2024 |
| IL | $1,700/yr | 2024 |
| IN | $1,600/yr | 2024 |
| KS | $2,100/yr | 2024 |
| KY | $1,700/yr | 2024 |
| LA | $2,900/yr | 2024 |
| MA | $1,600/yr | 2024 |
| MD | $1,500/yr | 2024 |
| ME | $900/yr | 2024 |
| MI | $1,500/yr | 2024 |
| MN | $1,600/yr | 2024 |
| MO | $2,000/yr | 2024 |
| MS | $2,400/yr | 2024 |
| MT | $1,300/yr | 2024 |
| NC | $1,600/yr | 2024 |
| ND | $1,500/yr | 2024 |
| NE | $2,000/yr | 2024 |
| NH | $850/yr | 2024 |
| NJ | $1,100/yr | 2024 |
| NM | $1,500/yr | 2024 |
| NV | $1,200/yr | 2024 |
| NY | $1,900/yr | 2024 |
| OH | $1,400/yr | 2024 |
| OK | $2,600/yr | 2024 |
| OR | $1,200/yr | 2024 |
| PA | $1,200/yr | 2024 |
| RI | $1,200/yr | 2024 |
| SC | $2,000/yr | 2024 |
| SD | $1,500/yr | 2024 |
| TN | $1,700/yr | 2024 |
| TX | $2,200/yr | 2024 |
| UT | $1,100/yr | 2024 |
| VA | $1,500/yr | 2024 |
| VT | $850/yr | 2024 |
| WA | $1,100/yr | 2024 |
| WI | $1,500/yr | 2024 |
| WV | $1,100/yr | 2024 |
| WY | $1,200/yr | 2024 |
Frequently Asked Questions
What is the average cap rate by market tier in the US in 2026?
Cap rates vary sharply by market tier across our 69-city dataset. High-cost coastal markets (median price > $500K) average 3.36%. Mid-cost markets ($300K–$500K) average 4.82%. Affordable Midwest/Sun Belt markets (< $300K) average 6.68%. For cash-flow investing, affordable and mid-cost markets deliver higher immediate yields; high-cost markets trade yield for appreciation upside.
What are cap rates in high-cost coastal markets vs affordable Midwest markets?
High-cost coastal markets (SF, LA, NYC, Seattle, Boston) average 3.36% cap rate with a median home price of ~$760,454.545. Affordable Midwest markets (Memphis, Cleveland, Indianapolis, Detroit) average 6.68% cap rate with prices around $235,424.242. The spread is driven by price appreciation in coastal markets compressing yields. Both can make sense — the right tier depends on whether you're optimizing for current income or long-term appreciation.
What is a good cash-on-cash return for rental property?
Cash-on-cash return benchmarks vary by market tier. In high-cost coastal markets, 3–6% is typical. In mid-cost Sun Belt markets, 6–9% is achievable. In affordable Midwest markets, 8–14% is realistic. Generally, 8–12% is considered strong across all tiers. Returns above 12% indicate excellent cash flow. Cash-on-cash measures annual pre-tax cash income divided by total cash invested (down payment + closing costs + rehab).
What are average property tax rates by state?
Property tax rates vary dramatically by state. Lowest: Hawaii (~0.3%), Alabama (~0.4%), Louisiana (~0.5%). Highest: New Jersey (~2.2%), Illinois (~2.1%), Connecticut (~1.9%). National average: 1.01%. Affordable Midwest markets often have comparatively high tax rates that offset low purchase prices — always factor effective tax rate into your underwriting.
What is the average vacancy rate for rental properties?
National average vacancy rate is 7.83% across tracked markets. By tier: high-cost coastal markets tend to have lower vacancy (~5%) due to supply constraints. Affordable Midwest markets see slightly higher vacancy (~7–9%) due to lower rental demand intensity. Budget 5–10% vacancy in all underwriting to account for tenant turnover.
How much does homeowners insurance cost by state?
National average is $1,590/year. By region: West Coast / Pacific and Northeast coastal markets see higher premiums due to flood/earthquake/wind risk. Southeast / Sun Belt (Florida, Louisiana, Texas) sees the highest premiums at $3,000–$5,000+ due to hurricane exposure. Midwest markets typically have the most affordable insurance at $800–$1,400/year.
What are the best US cities for real estate investment in 2026?
Best cities by tier strategy: Affordable tier (cash flow): Memphis TN, Birmingham AL, Cleveland OH, Indianapolis IN — cap rates 6.68%. Mid-cost tier (balance): Columbus OH, Charlotte NC, Nashville TN, Raleigh NC. High-cost tier (appreciation): San Francisco CA, Seattle WA, Boston MA — cap rates 3.36% but strong 5-year price growth. Southwest / Mountain West markets (Austin, Denver, Phoenix) offer a compelling mid-cost blend of rent growth and entry price.
Data Sources & Attribution
All data on this page is sourced from authoritative public and industry datasets. RealEstateStackHub aggregates, normalizes, and enriches these sources to provide actionable benchmarks for real estate investors.
- Zillow Research — zillow.com/research/data (median prices, rents, days on market)
- HUD Fair Market Rents — huduser.gov/portal/datasets/fmr.html (rental benchmarks)
- US Census Bureau — American Community Survey (ACS) — census.gov/programs-surveys/acs (demographics, income, housing)
- Tax Foundation — taxfoundation.org (property tax rates by state)
- Freddie Mac PMMS — freddiemac.com/pmms (weekly mortgage rate survey)
- NAIC / State Insurance Departments (homeowners insurance premiums)
- CoStar / CBRE Vacancy Reports (vacancy rate benchmarks)
Data Collection Methodology
🔄 Collection & Refresh
Market data is aggregated from multiple authoritative sources and refreshed on a rolling schedule. Median home prices and rental rates are updated monthly. Property tax rates are updated annually following state fiscal year releases. Insurance benchmarks are updated annually. Mortgage rates reflect the most recent Freddie Mac PMMS survey.
✅ Verification
All data points undergo automated range-checking against historical values and peer market comparisons. Outliers flagged more than 3 standard deviations from the metro average are quarantined for manual review before publication. Each record includes a confidence score and data freshness indicator.
📐 Calculations
Cap rate is calculated as Net Operating Income ÷ Current Market Value, assuming 50% expense ratio for markets without sufficient granular expense data. Cash-on-cash return assumes 25% down payment and current 30-year fixed mortgage rate. Vacancy rate represents the percentage of rental units unoccupied at any given time.
🗺️ Geographic Coverage
RealEstateStackHub currently tracks 69 US metro markets across all major geographic regions, with the highest concentration in the top 100 MSAs (Metropolitan Statistical Areas) by population. Property tax and insurance data covers all 50 US states.
Put This Data to Work
Use our free calculators to analyze any investment property using these benchmarks.