Lithonia, GA — Rental Investment Analysis
🟢GOOD— solid returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Lithonia, GA offers a 6.7% cap rate with median home prices of $252,475 and 3-bedroom rents of $2,165/month.
Lithonia offers solid returns for rental investors. Median home price sits at $252,475 — moderate by national standards, requiring a solid down payment but not out of reach. With 3-bedroom rents around $2,165/month, the 6.7% cap rate tells the story. Cash flow is modest at +$73/month — positive but tight. Rate increases or vacancies could flip it negative.
The 1% rule comes in at 0.86% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.06 is tight — you'll pass most lender minimums but with little margin for error.
Bottom line: Lithonia offers a balance of moderate cash flow and growth potential. Good for investors who want some income while building equity over time.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
6.7%
Above average
Monthly Cash Flow
+$73
After all expenses
Price-to-Rent
9.7
Investor-friendly
DSCR
1.06
Tight
Key Metrics
- Median Home Price
- $252,475
- Average Rent (3BR)
- $2,165/mo
- Price-to-Rent Ratio
- 9.7(good)
- 1% Rule
- 0.86%(fails — need 1%+)
- Cash-on-Cash Return
- 1.5%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 3.5%(-0.8% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- +1.6% YoY
Property Tax Rate
0.83%
of assessed value (GA avg)
Median Income
$61,980
household (GA avg)
Rent-to-Income
41.9%
Stretched
Section 8 Max Rent
$2,165/mo
3BR voucher payment
GA Investor Climate
Landlord Friendly
8/10
State Income Tax
Has state tax
Property Tax
0.83% effective
Population Trend
+1.6% (3yr)