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Cap Rate Analysis: Flagstaff, AZ

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

Challenging for pure cash flow
Based on $450,000 median price and $1,680/mo median rent
Est. Cap Rate
2.82%
1% Rule
0.37%
Fails
GRM
22.3x
Price / Income
8.5x

Market Data

Median Home Price$450,000
Median Monthly Rent$1,680
Property Tax Rate0.66%
Population76,800
Population Growth1% / yr
Median Household Income$52,800
Vacancy Rate4.5%
Annual Appreciation2.8%

Cap Rate Calculator — Flagstaff

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.66% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.41%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,853
net operating income
Gross Rent Multiplier
22.3x
High (>15)
1% Rule
0.37%
✗ Fails
Monthly Cash Flow
$904
before debt service
Annual Breakdown
Gross Rental Income$20,160
Less Vacancy−$907
Effective Income$19,253
Less Operating Expenses−$8,400
Net Operating Income$10,853

Cash-on-Cash Return — Flagstaff

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

$
$112,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.68%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$126,000
$112,500 down + $13,500 closing
Monthly Mortgage
$2,200
on $338K loan
Monthly Cash Flow
$-1,226
after all expenses
Annual Cash Flow
$-14,715
before taxes
Cash Flow Breakdown
Monthly Rent$1,680
Less Expenses−$706
Less Mortgage−$2,200
Monthly Cash Flow$-1,226

Is Flagstaff a Good Place to Invest in Rental Property?

Flagstaff, AZ has a population of 76,800 and has been growing at 1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $450,000 paired with median rents of $1,680/mo produces an estimated cap rate of 2.82%.

Property taxes at 0.66% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.5% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 8.5x, homes cost about 8.5 times the local median income of $52,800. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.8% 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, Flagstaff 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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