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Cap Rate Analysis: Grand Island, NE

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

Challenging for pure cash flow
Based on $185,000 median price and $1,020/mo median rent
Est. Cap Rate
3.85%
1% Rule
0.55%
Fails
GRM
15.1x
Price / Income
3.8x

Market Data

Median Home Price$185,000
Median Monthly Rent$1,020
Property Tax Rate1.6%
Population53,000
Population Growth0.4% / yr
Median Household Income$48,200
Vacancy Rate5.5%
Annual Appreciation2.2%

Cap Rate Calculator — Grand Island

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.6% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.05%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$5,651
net operating income
Gross Rent Multiplier
15.1x
High (>15)
1% Rule
0.55%
✗ Fails
Monthly Cash Flow
$471
before debt service
Annual Breakdown
Gross Rental Income$12,240
Less Vacancy−$673
Effective Income$11,567
Less Operating Expenses−$5,916
Net Operating Income$5,651

Cash-on-Cash Return — Grand Island

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

$
$46,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.24%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$51,800
$46,250 down + $5,550 closing
Monthly Mortgage
$905
on $139K loan
Monthly Cash Flow
$-313
after all expenses
Annual Cash Flow
$-3,751
before taxes
Cash Flow Breakdown
Monthly Rent$1,020
Less Expenses−$428
Less Mortgage−$905
Monthly Cash Flow$-313

Is Grand Island a Good Place to Invest in Rental Property?

Grand Island, NE has a population of 53,000 and has been growing at 0.4% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $185,000 paired with median rents of $1,020/mo produces an estimated cap rate of 3.85%.

Property taxes at 1.6% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.8x, homes cost about 3.8 times the local median income of $48,200. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.2% 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, Grand Island 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 Grand Island
Model a buy-rehab-refinance deal with Grand Island data pre-loaded.
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