Genuinely curious, is this just a metric for funsies?
Or does this somehow matter to you for your rentals? I have a home and a rental and would happily play if beneficial.
In my opinion, it has a huge impact on your cash flow. When a rental has high property taxes and insurance, the price to rent ratio might appear to be favorable to a potential landlord. However, you need to dive deeper. Just because you can buy a house for 150K and rent it for 1500/month doesn't make it a good deal.
For example, one of my previous childhood homes in the Chicagoland area sold for 140K in 2013. At that time, property taxes were $7850/year. Even if it rented for $1400/month, it wouldn't be a good deal.
It is also my personal opinion that high property taxes and insurance is a drag on appreciation. I was listening to a real estate podcast and they were talking about Sep 2020 to Sep 2021 data. The top 20 metro areas based on population averaged appreciation of 18%. Chicago was #20 on the list (dead last) with an appreciation of 11%.
My primary home has property taxes and insurance at $3100/year. Current market value is 365K, so my primary comes out to be at .85%