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Rental Property ROI Calculator 2026 USA — Cash-on-Cash Return & Net Yield

Rental Property ROI Calculator 2026 USA: calculate cash-on-cash return, net yield, monthly cash flow, cap rate, and total ROI for any US rental property. Includes vacancy, management fees, maintenance, and mortgage. Ohio, Texas, Florida, Michigan, and all 50 states.

🏘️ Rental Property ROI Calculator
Purchase & Financing
Rental Income
Annual Operating Expenses
~1% of value/yr

Rental Property ROI by US Market (2026)

Cash-on-cash ROI depends heavily on location. These estimates assume 20% down, 7.0% mortgage rate, standard expense ratios, and 5% vacancy.

MarketMedian PriceAvg Monthly RentGross YieldEst. Cash-on-Cash ROI
Cleveland, OH~$95K~$895/mo11.3%9–14%
Cincinnati, OH~$240K~$1,800/mo9.0%6–10%
Memphis, TN~$175K~$1,200/mo8.2%5–9%
Detroit, MI~$80K~$900/mo13.5%8–13%
Indianapolis, IN~$275K~$1,500/mo6.5%4–8%
Houston, TX~$330K~$1,800/mo6.5%2–5%
Austin, TX~$500K~$2,100/mo5.0%0–2%
Miami, FL~$550K~$2,400/mo5.2%0–2%
New York City, NY~$750K+~$2,800/mo4.5%Negative

The 1% Rule for Rental Property

The 1% rule states monthly rent should equal at least 1% of purchase price. A $150,000 property needs $1,500/month rent. In 2026 at 7%+ mortgage rates, you generally need 1.1–1.3% monthly rent-to-price to produce positive cash-on-cash ROI. This is achievable in Ohio, Michigan, Tennessee, and Alabama markets — but nearly impossible in coastal cities.

Frequently Asked Questions

How do you calculate ROI on a rental property?
Rental Property ROI = (Annual Net Cash Flow ÷ Total Cash Invested) × 100. Annual net cash flow = gross rent − vacancy − mortgage P+I − taxes − insurance − maintenance − management fees. Total cash invested = down payment + closing costs + upfront repairs.
What is cash-on-cash return for rental property?
Cash-on-cash return = Annual pre-tax cash flow ÷ Total cash invested × 100. It measures how efficiently your invested cash generates income. A $50,000 cash investment producing $5,000/year in cash flow = 10% cash-on-cash return.
What is a good ROI on rental property in 2026?
8–12% cash-on-cash ROI is strong. Cleveland and Detroit often achieve 9–14%. National markets average 4–7%. At 2026 mortgage rates (~7%), many coastal and high-cost markets produce negative cash flow — the property costs money every month.
How do I calculate ROI with a mortgage?
With a mortgage, calculate cash-on-cash return: Annual Cash Flow (after all expenses including mortgage P+I) ÷ Cash Invested (down + closing + repairs) × 100. The calculator above handles this automatically — just enter your mortgage rate and term.
🏘️ Cash-on-Cash ROI 2026US rental market benchmarks
Cleveland, OH
Max cash flow
9–14%
Detroit, MI
High yield
8–13%
Memphis, TN
Portfolio builder
5–9%
Indianapolis, IN
Stable cash flow
4–8%
Houston, TX
Growth market
2–5%
NYC / SF / LA
Appreciation only
Negative