City benchmark · July 2026 · free calculator
Average Cap Rate in San Diego
San Diego cap rate
4.75–5.0%
CBRE Class A stabilized, infill, H2 2025 · source: CBRE H2 2025
US national 4.73% — average core multifamily going-in cap rate, CBRE Q3 2025 (exit cap 4.95%)
Supply-constrained coastal market with consistently compressed yields. Enter your own property below to calculate its cap rate and net operating income.
Educational calculators — always consult a licensed professional before making financial decisions.
The all-in acquisition price of the property.
Gross rent before any expenses — check local comps.
Know your costs? Enter them. If not, the 50% rule estimates them.
Share of the year the unit sits empty. ~5% is a common baseline. (Ignored under the 50% rule.)
Property tax + insurance + maintenance + management + repairs. Exclude mortgage. (Used only in 'Enter my expenses' mode.)
Cap Rate
4.3%
NOI $15,000 ÷ price $350,000
Marker shows this property's cap rate against the US healthy band.
Cap rate excludes mortgage payments and income tax by design. Compare it against similar properties in the same market — not a universal benchmark. Estimate only; consult a licensed professional.
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What a 4.75–5.0% cap rate buys you — and what it costs
At 4.75–5.0%, San Diego sits above the US average core multifamily going-in cap rate of 4.73% (CBRE, Q3 2025). That points to a more income-oriented market: prices are lower relative to rents, so the property has a real chance of producing monthly cash flow rather than a monthly deficit. Put the cap rate next to your mortgage rate — if the cap rate is higher you have positive leverage and borrowing amplifies your return; if it is lower you have negative leverage and every borrowed dollar drags the return down.
The ranking is really about prices, not rents. Cap rate is income over price, so the markets at the bottom of the table are the ones where capital has competed hardest — Dallas and Austin sit at 4.25–4.75% despite Sunbelt pricing, while Pittsburgh reaches 5.5–6.5% and Detroit 5.5–6.25%. You cannot have both cheap entry and violent appreciation in the same asset. A high cap rate is not a free lunch; it is the market pricing a different set of risks and a different growth expectation, and it can equally flag weaker tenant demand, older stock with heavier CapEx, or slower population growth.
Treat this as the start of the analysis, not the end. These are institutional Class A apartment benchmarks — your specific property, class, and submarket will differ, sometimes a lot. Confirm the actual rent against local comparables, get the real tax bill, and reserve honestly for maintenance and capital expenditure. Then check your financed position with cash-on-cash return, whether a lender agrees using DSCR, and the whole hold with the rental property ROI calculator.
San Diego vs other US markets
| Market | Cap rate |
|---|---|
| San Diego (this page) | 4.75–5.0% |
| New York | 4.5–5.0% |
| Los Angeles | 4.75–5.5% |
| San Francisco | 4.5–5.0% |
| Boston | 4.5–4.75% |
| Seattle | 4.75–5.25% |
| Washington DC | 4.75–5.5% |
| Miami | 4.75–5.0% |
| Dallas | 4.25–4.75% |
| Austin | 4.25–4.75% |
| Houston | 4.75–5.25% |
| Atlanta | 4.5–5.0% |
| Phoenix | 4.25–5.0% |
| Denver | 4.5–5.0% |
| Charlotte | 4.75–5.0% |
| Nashville | 4.75–5.25% |
| Tampa | 4.75–5.25% |
| Orlando | 4.75–5.75% |
| Chicago | 5.25–5.5% |
| Baltimore | 5.25–5.75% |
| Milwaukee | 5.25–5.75% |
| Cleveland | 5.25–5.75% |
| Memphis | 5.5–6.0% |
| St. Louis | 5.5–6.0% |
| Detroit | 5.5–6.25% |
| Pittsburgh | 5.5–6.5% |
| US national core multifamily (going-in) | 4.73% |
Source: CBRE H2 2025 — CBRE Class A stabilized, infill, H2 2025. National figure: CBRE Q3 2025 core multifamily going-in cap rate. This table compares only markets measured the same way; a handful of US metros are published as all-class averages instead, and mixing the two would present a methodology difference as a market difference. CBRE's figures are sentiment estimates from its professionals rather than transaction records, were fielded in early December 2025, and vary by class and submarket.
Frequently asked questions
What is the average cap rate in San Diego?+
San Diego multifamily cap rates run approximately 4.75–5.0% (CBRE H2 2025, CBRE Class A stabilized, infill, H2 2025). Supply-constrained coastal market with consistently compressed yields. For context, the US average core multifamily going-in cap rate was 4.73% in Q3 2025 (CBRE), with an exit cap of 4.95%. Cap rate is net operating income divided by purchase price and deliberately excludes your mortgage, so it describes the property rather than your financed position.
Is San Diego a good market for rental investment?+
San Diego sits above the 4.73% national going-in average, which points to a more income-oriented market: prices are lower relative to rents, so the property has a better chance of producing real monthly cash flow. The trade-off is usually appreciation — higher-cap-rate markets have historically seen slower price growth than gateway metros. If you want income, that trade is the point; if you want equity growth, it is a genuine cost worth pricing.
Why are cap rates in San Diego at this level?+
Cap rate is income over price, so the ranking is really a statement about prices rather than rents. Gateway and high-growth metros — New York, San Francisco, Boston, Dallas, Austin — trade in the 4.25–5% range because capital competes hard for expected growth. Midwest and Northeast income markets like Pittsburgh, Detroit and St. Louis reach 5.5–6.5% because entry prices are low relative to achievable rents. You cannot have both cheap entry and violent appreciation in the same asset; the cap rate is essentially the price of that choice.
How reliable is this benchmark?+
Treat it as directional, not definitive. CBRE's figures are sentiment estimates gathered from roughly 200 of its professionals (about 3,600 estimates across 50+ markets), not a record of completed transactions, and the H2 2025 survey was fielded in early December 2025 — CBRE itself cautions that results may not reflect current conditions. The ranges describe where an asset is likely to trade; individual properties vary with location and quality and occasionally fall outside them. CBRE also reports that nearly all respondents believe cap rates have peaked.
Does this cap rate include my mortgage?+
No — that is intentional. Cap rate describes the property as if you paid all cash, which is what makes it comparable across buyers with different loans. To see what your specific financed position earns, use cash-on-cash return; to check whether a lender will fund it, use DSCR.