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Cap Rate Analysis: Cary, NC

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

Challenging for pure cash flow
Based on $480,000 median price and $1,920/mo median rent
Est. Cap Rate
3.05%
1% Rule
0.40%
Fails
GRM
20.8x
Price / Income
4.6x

Market Data

Median Home Price$480,000
Median Monthly Rent$1,920
Property Tax Rate0.77%
Population178,000
Population Growth2.4% / yr
Median Household Income$104,000
Vacancy Rate3.8%
Annual Appreciation3.4%

Cap Rate Calculator — Cary

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.77% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.58%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,396
net operating income
Gross Rent Multiplier
20.8x
High (>15)
1% Rule
0.40%
✗ Fails
Monthly Cash Flow
$1,033
before debt service
Annual Breakdown
Gross Rental Income$23,040
Less Vacancy−$876
Effective Income$22,164
Less Operating Expenses−$9,768
Net Operating Income$12,396

Cash-on-Cash Return — Cary

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

$
$120,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.01%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$134,400
$120,000 down + $14,400 closing
Monthly Mortgage
$2,347
on $360K loan
Monthly Cash Flow
$-1,233
after all expenses
Annual Cash Flow
$-14,795
before taxes
Cash Flow Breakdown
Monthly Rent$1,920
Less Expenses−$806
Less Mortgage−$2,347
Monthly Cash Flow$-1,233

Is Cary a Good Place to Invest in Rental Property?

Cary, NC has a population of 178,000 and has been growing at 2.4% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $480,000 paired with median rents of $1,920/mo produces an estimated cap rate of 3.05%.

Property taxes at 0.77% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 3.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 4.6x, homes cost about 4.6 times the local median income of $104,000. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Cary 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.

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