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Cap Rate Analysis: Charleston, SC

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

Challenging for pure cash flow
Based on $410,000 median price and $1,750/mo median rent
Est. Cap Rate
3.51%
1% Rule
0.43%
Fails
GRM
19.5x
Price / Income
6.0x

Market Data

Median Home Price$410,000
Median Monthly Rent$1,750
Property Tax Rate0.57%
Population156,110
Population Growth2.2% / yr
Median Household Income$68,400
Vacancy Rate4.8%
Annual Appreciation4%

Cap Rate Calculator — Charleston

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.57% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.98%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,228
net operating income
Gross Rent Multiplier
19.5x
High (>15)
1% Rule
0.43%
✗ Fails
Monthly Cash Flow
$1,019
before debt service
Annual Breakdown
Gross Rental Income$21,000
Less Vacancy−$1,008
Effective Income$19,992
Less Operating Expenses−$7,764
Net Operating Income$12,228

Cash-on-Cash Return — Charleston

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

$
$102,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.34%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$114,800
$102,500 down + $12,300 closing
Monthly Mortgage
$2,005
on $308K loan
Monthly Cash Flow
$-990
after all expenses
Annual Cash Flow
$-11,876
before taxes
Cash Flow Breakdown
Monthly Rent$1,750
Less Expenses−$735
Less Mortgage−$2,005
Monthly Cash Flow$-990

Is Charleston a Good Place to Invest in Rental Property?

Charleston, SC has a population of 156,110 and has been growing at 2.2% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $410,000 paired with median rents of $1,750/mo produces an estimated cap rate of 3.51%.

Property taxes at 0.57% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 6.0x, homes cost about 6.0 times the local median income of $68,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 4% 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, Charleston 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 Charleston
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