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Cap Rate Analysis: Cape Coral, FL

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

Challenging for pure cash flow
Based on $340,000 median price and $1,620/mo median rent
Est. Cap Rate
3.75%
1% Rule
0.48%
Fails
GRM
17.5x
Price / Income
5.8x

Market Data

Median Home Price$340,000
Median Monthly Rent$1,620
Property Tax Rate0.87%
Population216,961
Population Growth3.2% / yr
Median Household Income$58,400
Vacancy Rate5.2%
Annual Appreciation3.8%

Cap Rate Calculator — Cape Coral

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.87% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.12%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,605
net operating income
Gross Rent Multiplier
17.5x
High (>15)
1% Rule
0.48%
✗ Fails
Monthly Cash Flow
$884
before debt service
Annual Breakdown
Gross Rental Income$19,440
Less Vacancy−$1,011
Effective Income$18,429
Less Operating Expenses−$7,824
Net Operating Income$10,605

Cash-on-Cash Return — Cape Coral

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

$
$85,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.11%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$95,200
$85,000 down + $10,200 closing
Monthly Mortgage
$1,662
on $255K loan
Monthly Cash Flow
$-722
after all expenses
Annual Cash Flow
$-8,669
before taxes
Cash Flow Breakdown
Monthly Rent$1,620
Less Expenses−$680
Less Mortgage−$1,662
Monthly Cash Flow$-722

Is Cape Coral a Good Place to Invest in Rental Property?

Cape Coral, FL has a population of 216,961 and has been growing at 3.2% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $340,000 paired with median rents of $1,620/mo produces an estimated cap rate of 3.75%.

Property taxes at 0.87% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.8x, homes cost about 5.8 times the local median income of $58,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.8% 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, Cape Coral 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 Cape Coral
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