Dayton, OH — Rental Investment Analysis
🟢STRONG— excellent cash flow marketData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Dayton, OH has a median cap rate of 9.4%, making it one of the top cash-flowing rental markets in the United States.
Dayton is one of the strongest cash flow markets in the data. With a median home price of $106,218, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,225/month, the 9.4% cap rate tells the story. Expect around +$264/month cash flow after mortgage, taxes, insurance, and reserves.
The market passes the 1% rule (1.12%), which is increasingly rare and signals strong rent-to-price fundamentals. DSCR of 1.47 means the property's income comfortably covers debt service — DSCR loans should be easy to qualify for here.
Bottom line: Buy here if you want reliable monthly income. Dayton is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
9.4%
Above average
Monthly Cash Flow
+$264
After all expenses
Price-to-Rent
7.4
Investor-friendly
DSCR
1.47
Passes lender test
Key Metrics
- Median Home Price
- $106,218
- Average Rent (3BR)
- $1,225/mo
- Price-to-Rent Ratio
- 7.4(good)
- 1% Rule
- 1.12%(passes)
- Cash-on-Cash Return
- 13.0%
- 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
Property Tax Rate
1.53%
of assessed value (OH avg)
Median Income
$61,938
household (OH avg)
Rent-to-Income
23.7%
Affordable
Section 8 Max Rent
$1,225/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
-279 households
SHRINKING
Total Inflow
6,172
households moved in
Avg Income (New Residents)
$53,061
per household
Where they're coming from:
Where residents are leaving to:
Net outflow may indicate weakening demand — but can mean lower prices and higher cap rates.
Best Zip Codes in Dayton for Investors
All Zip Codes in Dayton
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 45402 | 16.5% | +$623 | $74,194 | $1,370/mo | 2.58 |
| 45417 | 14.1% | +$483 | $75,489 | $1,210/mo | 2.20 |
| 45406 | 11.4% | +$379 | $91,051 | $1,210/mo | 1.78 |
| 45405 | 11.0% | +$349 | $90,597 | $1,170/mo | 1.72 |
| 45404 | 9.9% | +$308 | $105,223 | $1,240/mo | 1.55 |
| 45403 | 8.8% | +$220 | $107,214 | $1,150/mo | 1.39 |
| 45410 | 7.8% | +$162 | $132,943 | $1,290/mo | 1.23 |
| 45414 | 5.0% | -$220 | $183,582 | $1,240/mo | 0.77 |
| 45345 | 4.1% | -$365 | $194,059 | $1,150/mo | 0.65 |
| 45459 | 2.8% | -$1,019 | $336,165 | $1,520/mo | 0.43 |