Which numbers actually
decide the deal
Yield, growth, tax and the exit. Most of what goes wrong is decided before the offer, in figures that were on the page all along.
Before you read on
- Market figures are Zillow ZHVI and ZORI as of June 2026, at metro level.
- Gross yield excludes property tax, management, maintenance and vacancy. The worked example below puts them back.
- Nothing here is tax advice.
Point 1Gross yield is not what you keep
An 8% headline routinely lands under 4% once the costs that always arrive are back in. This is a $300,000 property in a market with heavy property tax.
| Line | Per year | Note |
|---|---|---|
| Rent, fully occupied | $24,000 | 8% gross on a $300,000 purchase |
| Property tax | −$5,400 | At a 1.8% effective rate |
| Management | −$2,400 | 10% of collected rent |
| Vacancy and turnover | −$1,200 | 5% |
| Repairs and maintenance | −$1,900 | 8% of rent |
| Insurance | −$1,400 | |
| Net | $11,700 | 3.9% on the purchase price |
Texas and New Jersey both run effective property tax rates above 1.6%, which widens this gap further. Comparing markets on gross yield alone gets the ranking wrong.
Point 2Three ways to buy, and what each costs
| Route | Cash required | Suits | Watch for |
|---|---|---|---|
| All cash | The full price | Buyers avoiding rate risk, or starting small | No mortgage recording tax, and a faster close. In New York that saves close to 2% of the loan amount. |
| Conventional financing | 20–25% down | Buyers with US income and credit | Mortgage recording tax applies. Budget for lender fees on top. |
| Entity ownership | Depends on the entity | Portfolios, and anyone planning depreciation strategies | Formation and annual filing costs. Weigh those against what the structure actually saves. |
Point 3A high yield is not the same as a good market
The ten highest yields below. Every one of them is a cheaper market where the dollar rent per door is smaller and the resale buyer is local.
| Metro | Median price | Median rent | Gross yield | 5 year p.a. | 10 year p.a. |
|---|---|---|---|---|---|
| Chicago, IL | $359,888 | $2,275 | 7.59% | +5.05% | +5.15% |
| Cleveland, OH | $255,598 | $1,474 | 6.92% | +5.80% | +6.61% |
| Miami, FL | $476,598 | $2,695 | 6.78% | +6.02% | +6.75% |
| Houston, TX | $308,933 | $1,648 | 6.40% | +2.99% | +4.28% |
| Philadelphia, PA | $394,762 | $1,928 | 5.86% | +5.16% | +5.86% |
| New York, NY | $735,003 | $3,573 | 5.83% | +5.05% | +5.17% |
| Atlanta, GA | $383,050 | $1,854 | 5.81% | +4.28% | +6.82% |
| Dallas, TX | $366,701 | $1,673 | 5.48% | +2.95% | +5.62% |
| Columbus, OH | $335,357 | $1,528 | 5.47% | +4.72% | +6.86% |
| Charlotte, NC | $390,942 | $1,750 | 5.37% | +4.96% | +7.32% |
Cleveland and Columbus yield well and carry real risk at the exit: the buyer is a local owner-occupier or a local investor, and both disappear together when the regional economy turns.
Point 4What separates the markets
Texas and Arizona build when demand rises, which caps the upside and softens the floor. Coastal metros constrained by geography and zoning behave the other way.
Markets with a high share of cash purchases absorb rate rises better. New York's upper price bands are heavily cash, which is part of why the last twelve months look the way they do.
The tech layoffs hit Seattle and San Francisco directly. A metro with a broader employment base moves less in either direction.
This is the question the yield never answers. A property whose resale buyer pool is a local family behaves differently from one with a national or international bid.
FAQCommon questions
A Manhattan one-bedroom condominium starts around $700,000. If yield is the priority and the metro is open, there are markets where $200,000 buys a rentable unit. The right answer depends on whether you want income, appreciation, or a place you will eventually use.
A property management company, typically at 8–10% of collected rent. They handle leasing, collection and repairs. Interview two or three before you buy rather than after — their quality shows up directly in your net.
For investment, condominium. Co-ops are 10–20% cheaper, but the board approves the buyer, the reserve requirements are higher, and many buildings restrict or forbid subletting outright.
Brokerage, transfer taxes, and attorney fees. If you are a non-resident, FIRPTA withholds 15% of the gross sale price, which you reconcile when you file. It is a timing problem rather than a permanent cost, but it needs planning.
Let’s talk first
Send us the budget and the market, and we will come back with listings that fit and a full carrying cost on each one.
RELATED GUIDES
Recent transactions
A sample of the sales, purchases and rentals we acted on in 2025 and 2026.
Real estate brokerage services are provided through R New York.
Important notice
The figures on this page are general information as of August 2026 and do not represent an offer, a quote, or a guarantee of any transaction terms. Reinvent NY does not provide legal, tax, or investment advice. Confirm anything material with an attorney and a CPA before you act on it. Nothing here is a solicitation to invest, and no return is promised. Real estate brokerage services are provided through R New York.