Average capitalization rate in California, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in California

MedianMeanMode
6.1%
From 8,654,997 homes
6.2%
From 8,654,997 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in California

LocationMedianMeanMode
Acalanes Ridge
5.2%
From 481 homes
5.2%
From 481 homes
-
Acampo
7.2%
From 84 homes
7.1%
From 84 homes
-
Acton
5.8%
From 2,201 homes
5.8%
From 2,201 homes
-
Adelanto
8.4%
From 8,243 homes
8.6%
From 8,243 homes
-
Agoura Hills
6.2%
From 6,963 homes
6.5%
From 6,963 homes
-
Agua Dulce
5.2%
From 1,095 homes
5.2%
From 1,095 homes
-
Aguanga
7.7%
From 238 homes
7.9%
From 238 homes
-
Ahwahnee
7.6%
From 15 homes
7.4%
From 15 homes
-
Airport
9.1%
From 294 homes
9.5%
From 294 homes
-
Alameda
6.1%
From 17,672 homes
6.2%
From 17,672 homes
-

All cities in California