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Cap Rate Analysis: Fresno, CA

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

Challenging for pure cash flow
Based on $345,000 median price and $1,520/mo median rent
Est. Cap Rate
3.44%
1% Rule
0.44%
Fails
GRM
18.9x
Price / Income
6.6x

Market Data

Median Home Price$345,000
Median Monthly Rent$1,520
Property Tax Rate0.76%
Population548,323
Population Growth0.8% / yr
Median Household Income$52,400
Vacancy Rate5.5%
Annual Appreciation2.8%

Cap Rate Calculator — Fresno

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.76% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.88%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,941
net operating income
Gross Rent Multiplier
18.9x
High (>15)
1% Rule
0.44%
✗ Fails
Monthly Cash Flow
$828
before debt service
Annual Breakdown
Gross Rental Income$18,240
Less Vacancy−$1,003
Effective Income$17,237
Less Operating Expenses−$7,296
Net Operating Income$9,941

Cash-on-Cash Return — Fresno

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

$
$86,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.00%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$96,600
$86,250 down + $10,350 closing
Monthly Mortgage
$1,687
on $259K loan
Monthly Cash Flow
$-805
after all expenses
Annual Cash Flow
$-9,658
before taxes
Cash Flow Breakdown
Monthly Rent$1,520
Less Expenses−$638
Less Mortgage−$1,687
Monthly Cash Flow$-805

Is Fresno a Good Place to Invest in Rental Property?

Fresno, CA has a population of 548,323 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $345,000 paired with median rents of $1,520/mo produces an estimated cap rate of 3.44%.

Property taxes at 0.76% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 6.6x, homes cost about 6.6 times the local median income of $52,400. 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, Fresno 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 Fresno
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