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Grand Island, NE

Rental Property Investment Guide: Grand Island, NE

Updated 2026 · Based on median market data for Grand Island, NE

Cap Rate
3.85%
Median Price
$185K
Rent/Mo
$1,020
1% Rule
0.55%
Fails

Market Snapshot

Grand Island sits in the Midwest with a population of 53,000 growing at 0.4% annually. The median home costs $185,000 while rents average $1,020/mo, producing an estimated cap rate of 3.85%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.

Who Should Invest Here

Grand Island works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 3.85% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.

Deal Criteria for Grand Island

Target properties priced 15-25% below the $185,000 median — around $148,000 or less. At this price point with $1,020/mo rents, your cap rate improves to roughly 5.4%. Factor in 1.6% property taxes ($2,960/yr), budget 5% of gross rent for maintenance, and underwrite to a 5.5% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,331.

Risks and Considerations

Property taxes at 1.6% are notably high — this is a significant drag on NOI that some investors underestimate. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific Grand Island property using our cap rate calculator (pre-filled with Grand Island data). Compare Grand Island against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

Full Grand Island Analysis →Cap Rate CalculatorBRRRR Calculator

More Grand Island Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

Similar Markets in the Midwest

Cincinnati, OH$235K · $1,280/mo
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Des Moines, IA$215K · $1,180/mo
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Fargo, ND$245K · $1,200/mo
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Milwaukee, WI$195K · $1,150/mo
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Bloomington, IL$185K · $1,100/mo
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