DSCRAt a 6.80% 30-year rate, 4 of 18 metros currently clear the 1.2 DSCR most lenders want on a 25%-down loan. Cleveland leads with a score of 100 and a DSCR near 1.22, so today the Index ranks which markets come closest rather than which ones are guaranteed to 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 | 3.50% – 6.00% |
| Gross yield | annual rent ÷ price | 0.2 | 5.50% – 10.00% |
| DSCR | NOI ÷ annual debt service | 0.3 | 0.75 – 1.1 |
| Cash-on-cash | (NOI − debt service) ÷ cash invested | 0.2 | -3.00% – 3.00% |
Inputs & assumptions
- Median home price & median rent per metro, public feeds (Zillow ZHVI / ZORI).
- Financing rate, prevailing 30-year mortgage rate (Freddie Mac PMMS / FRED).
- Down payment 25% · closing costs 3% · operating expense load 40% of gross rent · amortization 30 years.
- Lender DSCR minimum: 1.2.
Every metro in this run is computed at the same 6.80% financing rate, so the scores compare markets on equal terms. Inputs are live feeds. 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 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.
Figures are clearly badged Live or Seed, and every page carries a “last refreshed” timestamp.
Not financial, investment, tax, or legal advice.