What is the cap rate in Cincinnati, OH?

The median cap rate in Cincinnati, OH is 4.2%. This is based on HUD Fair Market Rents and current home values.

Is Cincinnati a good place to buy rental property?

Cincinnati has a cap rate of 4.2% and estimated cash flow of -$437/month. Returns are moderate — consider the appreciation potential. Median home price is $257,477 with average 3BR rent of $1,445/month.

What is the average rent in Cincinnati, OH?

The HUD Fair Market Rent for a 3-bedroom in Cincinnati, OH is $1,445/month. This represents the estimated rent for standard-quality housing in the area.

Cincinnati, OH — Rental Investment Analysis

🟡MODERATE— average returns

Data: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.

Investment Summary

As of 2026, rental properties in Cincinnati, OH yield a 4.2% cap rate. Median home price is $257,477 with 3-bedroom rents at $1,445/month.

Cincinnati is a moderate market — workable but not exceptional for cash flow. Median home price sits at $257,477 — moderate by national standards, requiring a solid down payment but not out of reach. With 3-bedroom rents around $1,445/month, the 4.2% cap rate tells the story. Cash flow is deeply negative at -$437/month with standard assumptions. This market requires appreciation to justify the investment.

At 0.60% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of 0.66 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.

Bottom line: Consider Cincinnati only if you believe in long-term appreciation. The numbers don't support cash flow at today's prices and rates.

Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.

Cap Rate

4.2%

Below average

Monthly Cash Flow

-$437

After all expenses

Price-to-Rent

13.8

Investor-friendly

DSCR

0.66

Fails

Key Metrics

Median Home Price: $257,477
Average Rent (3BR): $1,445/mo
Price-to-Rent Ratio: 13.8(good)
1% Rule: 0.60%(fails — need 1%+)
Cash-on-Cash Return: -9.3%
Vacancy Rate: 8.0%

Market Strength

Unemployment Rate: 3.9%(-0.4% vs national)
Rent Growth (YoY): +2.9%(national avg)
Population Growth: -0.5% YoY

Assumptions Used

20% down, 6.52% rate, 30yr, 8% vacancy, 10% maintenance

Customize these numbers →

Property Tax Rate

1.53%

of assessed value (OH avg)

Median Income

$61,938

household (OH avg)

Rent-to-Income

28%

Affordable

Section 8 Max Rent

$1,445/mo

3BR voucher payment

OH Investor Climate

Landlord Friendly

7/10

State Income Tax

Has state tax

Property Tax

1.53% effective

Population Trend

-0.5% (3yr)

Population Movement (Tax Year 2021→2022)

Net Migration

-1,958 households

SHRINKING

Total Inflow

331,989

households moved in

Avg Income (New Residents)

$109,723

per household

Where they're coming from:

1.Hamilton Non-migrants, OH321,941 households · avg $110,979

2.Butler, OH2,819 households · avg $50,499

3.Clermont, OH1,632 households · avg $61,350

4.Franklin, OH607 households · avg $58,059

5.Campbell, KY561 households · avg $70,371

Where residents are leaving to:

1.Hamilton Non-migrants, OH321,941 households

2.Butler, OH3,355 households

3.Clermont, OH2,220 households

4.Campbell, KY648 households

5.Franklin, OH639 households

Net outflow may indicate weakening demand — but can mean lower prices and higher cap rates.

Best Zip Codes in Cincinnati for Investors

45225

Cap Rate: 9.3%Cash Flow: +$285/mo$118,383

45204

Cap Rate: 8.6%Cash Flow: +$229/mo$126,604

45214

Cap Rate: 7.8%Cash Flow: +$161/mo$141,562

All Zip Codes in Cincinnati

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
45225	9.3%	+$285	$118,383	$1,320/mo	1.45
45204	8.6%	+$229	$126,604	$1,320/mo	1.34
45214	7.8%	+$161	$141,562	$1,360/mo	1.21
45205	7.7%	+$152	$144,144	$1,370/mo	1.20
45216	7.5%	+$149	$162,811	$1,520/mo	1.17
45251	6.5%	+$25	$223,814	$1,870/mo	1.02
45231	5.8%	-$100	$218,095	$1,670/mo	0.91
45232	5.7%	-$102	$175,755	$1,320/mo	0.89
45239	5.3%	-$196	$210,427	$1,490/mo	0.82
45237	5.2%	-$204	$203,020	$1,420/mo	0.81
45211	5.1%	-$221	$199,567	$1,370/mo	0.79
45219	4.7%	-$390	$274,412	$1,780/mo	0.73
45227	4.5%	-$448	$289,212	$1,830/mo	0.71
45238	4.4%	-$371	$221,691	$1,370/mo	0.69
45224	4.3%	-$367	$215,011	$1,320/mo	0.68
45223	4.3%	-$390	$225,755	$1,380/mo	0.68
45202	4.2%	-$736	$398,878	$2,380/mo	0.65
45207	4.1%	-$426	$226,213	$1,340/mo	0.65
45039	4.0%	-$798	$397,047	$2,290/mo	0.62
45252	3.7%	-$678	$307,485	$1,700/mo	0.59
45206	3.7%	-$586	$262,137	$1,440/mo	0.58
45229	3.4%	-$621	$252,818	$1,320/mo	0.54
45255	3.4%	-$888	$358,049	$1,860/mo	0.53
45245	3.2%	-$877	$332,100	$1,660/mo	0.50
45220	3.1%	-$940	$342,670	$1,670/mo	0.48
45209	3.0%	-$1,152	$405,818	$1,930/mo	0.47
45230	2.8%	-$940	$314,672	$1,440/mo	0.44
45213	2.7%	-$953	$306,842	$1,360/mo	0.42
45233	2.4%	-$1,175	$350,738	$1,450/mo	0.37
45226	2.0%	-$1,710	$469,060	$1,770/mo	0.32
45203	1.9%	-$1,347	$360,512	$1,320/mo	0.30
45208	1.3%	-$2,654	$628,596	$1,930/mo	0.21