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🏠 Rental Yield Calculator Pro (USA)

Professional Investment Property Return Calculator for Real Estate Investors

📊 CFA Verified 🛡️ Free Tool 💰 All 50 States
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Updated
January 2026

What is Rental Yield?

The Rental Yield Calculator Pro (USA) is a professional-grade tool designed for American real estate investors, property managers, and home buyers evaluating investment properties. Rental yield measures the annual return on investment from rental income as a percentage of property value, helping you make informed investment decisions.

Understanding rental yield is crucial for comparing investment opportunities across different markets. A property with a higher yield generates more income relative to its cost. However, yield varies significantly across the USA - Midwestern states often offer yields of 8-12%, while coastal markets like California and New York typically see 3-5% due to higher property prices.

This calculator helps you analyze both gross yield (total rent ÷ property value) and net yield (after expenses). It also calculates cap rate for cash buyers, ROI for financed purchases, and monthly cash flow projections. Whether you're a first-time investor or managing a portfolio, these metrics are essential for smart real estate decisions.

📈 Rental Yield Calculator

Calculate gross and net rental yield for any investment property

Enter Property Details

Annual Expenses (for Net Yield)

Your Results

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Enter property details and click Calculate to see rental yield

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Investment Tip
The 1% rule suggests monthly rent should be at least 1% of purchase price (12% annual yield). However, always consider location, appreciation potential, and your investment goals alongside yield.

📊 Cap Rate Calculator

Calculate capitalization rate for cash purchases and commercial properties

Property & Income Details

Operating Expenses (Annual)

Cap Rate Results

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Enter property details to calculate capitalization rate

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Cap Rate Insight
Cap rates vary by market and property type. Residential typically sees 4-8%, commercial 6-10%, and multifamily 5-9%. Higher cap rates indicate higher risk or better deals. Compare with local averages.

💵 Cash Flow Calculator

Calculate monthly and annual cash flow for financed properties

Property & Financing Details

Monthly Expenses

Cash Flow Results

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Enter property and financing details to calculate cash flow

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Cash Flow Goal
Aim for at least $100-200 positive cash flow per unit monthly. This provides a safety margin for unexpected expenses. Negative cash flow properties can drain your finances quickly.

🎯 ROI Calculator

Calculate return on investment including appreciation and equity buildup

Investment Details

Include down payment, closing costs, and initial repairs

Net income after all expenses including mortgage

Check your amortization schedule for Year 1 principal

ROI Results

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Enter investment details to calculate total ROI

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ROI Perspective
Total ROI includes cash flow, appreciation, and equity buildup. A 15-20% total ROI is excellent for rental property. Compare with alternative investments like stocks (historically 10% average).

🗺️ Average Rental Yields by State (2026)

Compare rental yields across all 50 US states

StateAvg YieldAvg RentMedian PriceMarket
Ohio8-12%$1,200$145,000Strong
Michigan8-11%$1,150$155,000Strong
Indiana8-10%$1,180$165,000Strong
Missouri7-10%$1,100$160,000Good
Pennsylvania7-9%$1,350$195,000Good
Texas6-8%$1,500$265,000Hot
Florida5-7%$1,650$320,000Hot
Georgia6-8%$1,450$250,000Good
North Carolina5-7%$1,400$270,000Good
Tennessee6-8%$1,350$235,000Good
Arizona5-7%$1,550$310,000Hot
Colorado5-6%$1,700$380,000Good
Washington4-6%$1,800$420,000Strong
Oregon4-6%$1,650$380,000Good
Nevada5-7%$1,500$295,000Good
New York3-5%$2,200$475,000Stable
California3-5%$2,400$550,000High Value
Massachusetts4-5%$1,950$450,000Stable
New Jersey4-5%$1,800$410,000Stable
Virginia5-7%$1,600$320,000Good
Illinois6-8%$1,450$235,000Good
Wisconsin7-9%$1,250$195,000Good
Minnesota6-8%$1,400$250,000Good
Kansas8-10%$1,100$150,000Good
Iowa7-10%$1,050$145,000Good
Nebraska7-9%$1,150$170,000Good
Oklahoma8-11%$1,100$145,000Good
Arkansas8-10%$1,000$135,000Good
Louisiana7-9%$1,150$165,000Good
Mississippi8-11%$950$125,000Good
Alabama7-10%$1,050$150,000Good
Kentucky7-10%$1,100$155,000Good
West Virginia8-12%$950$115,000Good
South Carolina6-8%$1,350$225,000Good
North Dakota7-9%$1,200$175,000Good
South Dakota7-9%$1,150$165,000Good
Montana6-8%$1,300$225,000Good
Wyoming7-9%$1,250$185,000Good
Idaho5-7%$1,400$270,000Good
Utah5-7%$1,500$290,000Good
New Mexico7-9%$1,250$185,000Good
Alaska5-7%$1,600$305,000Stable
Hawaii3-5%$2,100$520,000High Value
Connecticut4-6%$1,700$350,000Stable
Rhode Island5-6%$1,550$325,000Good
Vermont5-7%$1,350$265,000Good
New Hampshire5-7%$1,500$295,000Good
Maine6-8%$1,300$215,000Good
Delaware5-7%$1,450$275,000Good
Maryland4-6%$1,700$360,000Stable
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Important Notes
These are average yields and vary significantly within each state. Urban areas typically have lower yields but higher appreciation. Rural areas often have higher yields but slower appreciation. Always analyze specific neighborhoods and properties.

❓ Frequently Asked Questions

What is a good rental yield in the USA?
A good rental yield in the USA typically ranges from 5-8% for residential properties. Yields above 8% are considered excellent, while yields below 4% may indicate an overpriced market. Commercial properties often have higher yields of 6-10%. Location significantly impacts yields - Midwest and South generally offer higher yields than coastal markets.
How do you calculate rental yield?
Rental yield is calculated by dividing annual rental income by property value, then multiplying by 100. For example: A $200,000 property earning $1,500/month rent has an annual income of $18,000. Rental yield = ($18,000 / $200,000) × 100 = 9%. Net yield subtracts expenses like taxes, insurance, maintenance, and vacancy costs.
What is the difference between gross yield and net yield?
Gross yield is calculated using total annual rent before any expenses. Net yield accounts for all operating expenses including property taxes, insurance, maintenance, property management fees, and vacancy allowance. Net yield gives a more accurate picture of actual investment returns and is typically 1-3% lower than gross yield.
What is cap rate in real estate?
Cap rate (capitalization rate) is the ratio of net operating income (NOI) to property value. It measures the potential return on a real estate investment if purchased with cash. A property with $20,000 NOI and a $250,000 value has an 8% cap rate. Higher cap rates indicate higher risk and potentially higher returns.
What expenses should I include for net rental yield?
Include: property taxes (1-2% of value), insurance ($1,000-2,500/year), maintenance (1% of value annually), property management (8-12% of rent), vacancy allowance (5-10% of rent), HOA fees, and utilities if landlord pays. Exclude mortgage payments when calculating yield, as this is financing cost, not operating expense.
Which US states have the highest rental yields?
States with the highest average rental yields include: Ohio (8-12%), Michigan (8-11%), Indiana (8-10%), Missouri (7-10%), and Pennsylvania (7-9%). These states offer affordable property prices relative to rents. Coastal markets like California and New York typically have lower yields (3-5%) due to high property values.
How do I calculate cash flow on a rental property?
Cash flow = Net Operating Income - Mortgage Payment (P&I). Calculate all income, subtract all operating expenses to get NOI, then subtract your monthly mortgage principal and interest payment. Positive cash flow means income exceeds all expenses. Aim for at least $100-200 positive cash flow per door monthly.
What is the 1% rule in rental property?
The 1% rule suggests monthly rent should equal at least 1% of the purchase price. A $150,000 property should rent for at least $1,500/month. This typically translates to a 12% gross yield (1% × 12 months). While a useful quick filter, always perform detailed analysis including expenses and local market conditions.
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Jennifer Williams, CFA

Real Estate Investment Analyst | Wharton School of Business

🎓 CFA Charterholder 🏆 15+ Years Experience 📚 Wharton MBA 🏠 50+ Properties Analyzed

Disclaimer: This calculator provides estimates based on the information you provide and general market assumptions. Actual returns may vary significantly based on market conditions, property-specific factors, and unexpected expenses. This tool does not constitute financial or investment advice.

Market Data: State average yields and prices are estimates based on 2025-2026 market data and may not reflect current conditions in specific markets. Always verify with local real estate professionals before making investment decisions.

Privacy: This tool operates entirely in your browser. We do not collect, store, or transmit any data entered into the calculator. Your calculations remain private and secure on your device.

Last Updated: January 2026. Market data is reviewed quarterly for accuracy.