At a 6.69% 30-year rate, none of the 18 metros currently clear the 1.2 DSCR most lenders want on a 25%-down loan. Chicago leads with a score of 56 and a DSCR near 0.79, with cash-on-cash around -4.5%. The cheaper Midwest and Southern metros cash-flow today, while the pricier coastal and Sun Belt metros do not, so the Index ranks which markets pay their own mortgage rather than promising every one will qualify.
The Investor Yield Index, in full
For each metro the Index blends four cash-flow metrics into one 0–100 score. Cap rate and DSCR carry the most weight because they decide whether a deal pays its own mortgage.
Each metric is first normalized to 0–100 across the band below, then multiplied by its weight. A value at or under the low end scores 0, a value at or above the high end scores 100.
| Metric | Formula | Weight | Normalization band |
|---|---|---|---|
| Cap rate | NOI ÷ price | 0.3 | 2.00% – 6.00% |
| Gross yield | annual rent ÷ price | 0.2 | 3.50% – 10.00% |
| DSCR | NOI ÷ annual debt service | 0.3 | 0.4 – 1.2 |
| Cash-on-cash | (NOI − debt service) ÷ cash invested | 0.2 | -12.00% – 4.00% |
Inputs & assumptions
- Median home price and median rent per metro, pulled live from Zillow public home-value and rent feeds.
- Financing rate, a 6.69% prevailing 30-year mortgage figure. We treat it as a current market estimate, not a live lender feed.
- Down payment 25%, closing costs 3%, operating expense load 40% of gross rent, amortization 30 years.
- Lender DSCR minimum of 1.2.
Every metro in this run is computed at the same 6.69% financing rate, so the scores compare markets on equal terms. Price and rent inputs are live from Zillow, covering mortgage: FRED PMMS 6.69% as of 2026-08-06; 18 metros (mid-tier median + entry band). The bands are set to the realistic 2026 spread, which is why the Index reads as a relative ranking rather than an A for every market.
What the spread looks like right now
Cap rates across the 18 metros run from about 2.8% to 4.5%, with Chicago at the top. Only 0 metros currently return a positive cash-on-cash, and 0 of those also clear the 1.2 lender DSCR line.
Price near $359,888, rent $2,275/mo, cap rate 4.5%, DSCR 0.79, cash-on-cash -4.5%.
A DSCR at or above 1.2 means the rent covers the mortgage with the cushion lenders ask for. A negative cash-on-cash means you would feed the property out of pocket at this 6.69% rate, even if it scores well against peers.
What the Index is, and isn’t
It is a reproducible, weekly comparison of rental cash-flow strength across U.S. metros, built from public price and rent data. It is not an appraisal, a rate quote, or advice on your specific property. Your real return depends on the actual home, your financing, taxes, and management, so run the calculators on your exact deal before you act.
Data refresh
The pipeline (npm run weekly) pulls fresh price/rent/rate data, recomputes
every metro’s score, appends a dated row to the history series, and proposes new content, all human-gated for money/legal claims. Cloudflare rebuilds on the resulting commit.
Code & honesty
The math is open in src/lib/metrics.ts and src/lib/index.ts.
Price and rent figures are live, the financing rate is a market estimate, and every page carries a “last refreshed” timestamp.
Not financial, investment, tax, or legal advice.