There was an inquiry about what numbers to input into an online yield calculator when looking for rental properties in Columbus with a budget of $150,000. The calculator itself is not difficult, but it is often overlooked that the same property can yield completely different results depending on what items are included or excluded. Let's follow that situation from start to finish.

According to the Zillow Home Value Index, the average home value in Columbus is about $152,411, and the average rent, as reported by RentCafe in August 2026, is $1,214 per month. Assuming this property is purchased for $152,411 and rented out for $1,214 per month, the annual rental income would be $14,568, resulting in a total yield of about 9.6 percent compared to the purchase price. This is the first number that comes up when only the purchase price and monthly rent are entered into the calculator.

However, if we don't stop there and include operating costs, the picture changes. According to Ownwell, the effective property tax rate in Muscogee County is about 1.25 percent, which means the property tax for a $152,411 home would be around $1,900 annually. Adding insurance, management fees, maintenance costs, and vacancy losses, and applying the 50 percent rule, the net operating income would drop to $7,284, which is half of the rental income, and the cap rate would decrease to about 4.8 percent. While the total yield of 9.6 percent and the cap rate of 4.8 percent are numbers derived from the same property, the difference can be nearly double depending on what was input into the calculator.

If we factor in a loan situation, a third number emerges. If a down payment and closing costs of $38,000 are invested and after paying the mortgage principal and interest, there is a pre-tax cash flow of $1,900 left annually, the cash-on-cash return would be 5 percent. This figure can vary significantly depending on the loan interest rate and repayment terms, so it is always necessary to check what loan conditions were entered into the calculator.

• Total yield = annual rental income ÷ purchase price x 100, excluding operating costs
• Cap rate = annual NOI ÷ purchase price x 100, including operating costs, excluding loans
• Cash-on-cash return = annual pre-tax cash flow ÷ actual cash invested x 100, including loans

According to the 1 percent rule, a $152,411 home should rent for $1,524 per month to meet the criteria, but the average rent in Columbus of $1,214 falls short. However, since the purchase price itself is low, the cap rate tends to be decent, which is an advantage, but the inability to guarantee price appreciation can be a concern. The northern school district of Columbus, which Korean families are interested in, has a good rating on GreatSchools, but school district boundaries change frequently, so it is advisable to check the assigned school for the specific address before purchasing. When moving from another state, if the purchase price is lower than the previous residence, entering operating cost items carelessly can lead to results that significantly deviate from reality.

There are also items that the calculator does not show. When considering the asset increase accumulated through principal repayment, tax benefits from depreciation, and potential capital gains expected from long-term holding, the total return can present a better picture than the cap rate or cash-on-cash return figures. In Columbus, due to the presence of a military base, tenant demand tends to peak in certain seasons, so when inputting vacancy assumptions into the calculator, it is also necessary to consider this seasonality. In markets with lower purchase prices, each of these detailed items can easily lead to differences in yield. I advised the person who initially inquired not to just input the purchase price and monthly rent into the calculator, but to fill in property tax, insurance, vacancy assumptions, and loan conditions in order, and then to compare the three indicators side by side.

Ultimately, even with the same calculator, whether to look at only the total yield, include operating costs to see the cap rate, or factor in loans to view the cash-on-cash return can lead to significantly different results. Developing the habit of looking at all three indicators together helps gauge actual cash flow. This article is not investment or legal advice, and it is recommended to verify specific numbers with a professional before making any actual contracts.