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Cap Rate Analysis: Gainesville, FL

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

Moderate — source deals carefully
Based on $265,000 median price and $1,380/mo median rent
Est. Cap Rate
4.26%
1% Rule
0.52%
Fails
GRM
16.0x
Price / Income
6.9x

Market Data

Median Home Price$265,000
Median Monthly Rent$1,380
Property Tax Rate0.85%
Population143,468
Population Growth1.3% / yr
Median Household Income$38,200
Vacancy Rate5.5%
Annual Appreciation3.2%

Cap Rate Calculator — Gainesville

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.85% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.53%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,361
net operating income
Gross Rent Multiplier
16.0x
High (>15)
1% Rule
0.52%
✗ Fails
Monthly Cash Flow
$780
before debt service
Annual Breakdown
Gross Rental Income$16,560
Less Vacancy−$911
Effective Income$15,649
Less Operating Expenses−$6,288
Net Operating Income$9,361

Cash-on-Cash Return — Gainesville

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

$
$66,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.02%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$74,200
$66,250 down + $7,950 closing
Monthly Mortgage
$1,296
on $199K loan
Monthly Cash Flow
$-496
after all expenses
Annual Cash Flow
$-5,948
before taxes
Cash Flow Breakdown
Monthly Rent$1,380
Less Expenses−$580
Less Mortgage−$1,296
Monthly Cash Flow$-496

Is Gainesville a Good Place to Invest in Rental Property?

Gainesville, FL has a population of 143,468 and has been growing at 1.3% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $265,000 paired with median rents of $1,380/mo produces an estimated cap rate of 4.26%.

Property taxes at 0.85% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 6.9x, homes cost about 6.9 times the local median income of $38,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Gainesville presents moderate opportunities. Cap rates near 4.26% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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