Boston Neighborhoods With The Best Cap Rates

Boston’s real estate market for multifamily has exploded over the past decade. Rising rents, increasing enrollment at Universities, and a short supply of properties has sent prices for Boston real estate through the roof. The 1 year multi-family median for the city of Boston is currently $1.02M. That’s enough to make you shake your head if you’re an investor looking to break into Boston’s competitive multi-family market.

Based on this median sales price, we can get a picture of what kind of cap rate Boston is providing investors at these prices. We can project what kind of yearly revenue a multi-family property would yield by multiplying the average rent price in Boston by twelve. We can then divide that into the median price of multi family homes for sale in Boston to get a rough estimate of average cap rates.