[quote=barnaby33]The number I’ve read is historically 4-6 times income for the median priced house. 6 at the high end, 4 at the low.
Josh[/quote]
Are you talking about Net Operating Income or Household Income?
In any area that’s not shrinking (think, Detroit), finding something at 8x annualized rent is pretty good (assuming stable rents). Assuming that 30% of rent gets eaten up by costs (maintenance, vacancy, etc), that’s 11.5x NOI and an 8.7% cap rate.
Can you find 7x rent in a market like SD? Probably, but it’s very hard. Historically, it’s been unusual, but not impossible. But who knows what the future shall bring?
