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Cap Rate Analysis: Broken Arrow, OK

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

Moderate — source deals carefully
Based on $255,000 median price and $1,320/mo median rent
Est. Cap Rate
4.22%
1% Rule
0.52%
Fails
GRM
16.1x
Price / Income
3.7x

Market Data

Median Home Price$255,000
Median Monthly Rent$1,320
Property Tax Rate0.88%
Population115,000
Population Growth1.2% / yr
Median Household Income$68,200
Vacancy Rate5%
Annual Appreciation2.6%

Cap Rate Calculator — Broken Arrow

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.88% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.50%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,928
net operating income
Gross Rent Multiplier
16.1x
High (>15)
1% Rule
0.52%
✗ Fails
Monthly Cash Flow
$744
before debt service
Annual Breakdown
Gross Rental Income$15,840
Less Vacancy−$792
Effective Income$15,048
Less Operating Expenses−$6,120
Net Operating Income$8,928

Cash-on-Cash Return — Broken Arrow

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

$
$63,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.08%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$71,400
$63,750 down + $7,650 closing
Monthly Mortgage
$1,247
on $191K loan
Monthly Cash Flow
$-481
after all expenses
Annual Cash Flow
$-5,770
before taxes
Cash Flow Breakdown
Monthly Rent$1,320
Less Expenses−$554
Less Mortgage−$1,247
Monthly Cash Flow$-481

Is Broken Arrow a Good Place to Invest in Rental Property?

Broken Arrow, OK has a population of 115,000 and has been growing at 1.2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $255,000 paired with median rents of $1,320/mo produces an estimated cap rate of 4.22%.

Property taxes at 0.88% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.7x, homes cost about 3.7 times the local median income of $68,200. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Broken Arrow presents moderate opportunities. Cap rates near 4.22% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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