from DSNews on 4/12/2012
I don't know how those cap rates are calculated. In Northern California, the cap rate can range from 3% to 8% if you hire a property manager. Lowest cap rate of 5.4% sounds still high.
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Based on the 26 major markets CoreLogic assessed, the markets that yield the highest single-family rental cap rates were generally in Florida or the Midwest. West Palm Beach had the highest rate at 12.4 percent, followed by Cleveland (12.3 percent), Fort Lauderdale (12 percent), Chicago (11.6 percent), and Las Vegas (11.4 percent).
The common denominator for areas with lower cap rates was lower than average prices. Honolulu at 5.4 percent had the lowest cap rate, followed by Raleigh (7.3 percent), and Austin (7.7 percent). Among the larger markets, Miami had the lowest cap rate at 7.7 percent, which is partly due to improved home prices.
As of January 2012, cap rates for the single-family market averaged 8.6 percent, according to CoreLogic.
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