Market Analysis

Kansas City, Missouri

Rental investment market data and analysis · Updated July 2026

Median Home Price

$270,000

Average Monthly Rent

$1,350

Estimated Cap Rate

6.0%

Rent-to-Price Ratio

0.5%

Below 1% Rule

Market Trends

Kansas City metro area — % change since 2018

Home Prices

+83.3%

Rent Index

+36.2%

-2%15%33%50%68%85%20182020202220242026

Average Rent by Bedroom

BedroomsAvg Rent
Condo$1,182/mo
Apartment$1,200/mo
Multi-Family$1,323/mo
Single Family$1,434/mo
Townhouse$2,247/mo

Sample Investment Analysis

Based on median price + average rent, 20% down, 6.8% rate, 30yr

Purchase Price$270,000
Down Payment (20%)$54,000
Monthly P&I$1,408
Monthly Rent$1,350
Est. NOI$9,720/yr
Est. Cash Flow-$598/mo
Cash on Cash-12.1%

The Kansas City market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.

What Investors Should Know About Kansas City

  • 1Moderate cap rates suggest balanced cash flow and appreciation
  • 21% Rule fails at median prices — need rent of $2,700/mo to pass
  • 3Below-average rents keep entry costs low for new investors

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