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Cap Rate Analysis: Atlanta, GA

Investment metrics, interactive calculators, and data-driven analysis for Atlanta rental properties.

Challenging for pure cash flow
Based on $375,000 median price and $1,700/mo median rent
Est. Cap Rate
3.43%
1% Rule
0.45%
Fails
GRM
18.4x
Price / Income
5.4x

Market Data

Median Home Price$375,000
Median Monthly Rent$1,700
Property Tax Rate0.92%
Population510,823
Population Growth1.3% / yr
Median Household Income$69,800
Vacancy Rate5.3%
Annual Appreciation3.7%

Cap Rate Calculator — Atlanta

Pre-filled with Atlanta medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.92% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.85%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,691
net operating income
Gross Rent Multiplier
18.4x
High (>15)
1% Rule
0.45%
✗ Fails
Monthly Cash Flow
$891
before debt service
Annual Breakdown
Gross Rental Income$20,400
Less Vacancy−$1,081
Effective Income$19,319
Less Operating Expenses−$8,628
Net Operating Income$10,691

Cash-on-Cash Return — Atlanta

Factor in financing to see your actual return on invested capital in Atlanta.

$
$93,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.69%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$105,000
$93,750 down + $11,250 closing
Monthly Mortgage
$1,834
on $281K loan
Monthly Cash Flow
$-848
after all expenses
Annual Cash Flow
$-10,170
before taxes
Cash Flow Breakdown
Monthly Rent$1,700
Less Expenses−$714
Less Mortgage−$1,834
Monthly Cash Flow$-848

Is Atlanta a Good Place to Invest in Rental Property?

Atlanta, GA has a population of 510,823 and has been growing at 1.3% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $375,000 paired with median rents of $1,700/mo produces an estimated cap rate of 3.43%.

Property taxes at 0.92% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.3% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.4x, homes cost about 5.4 times the local median income of $69,800. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.7% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.

Bottom line: At current median prices, Atlanta is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

Run a BRRRR analysis for Atlanta
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