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Cap Rate Analysis: Lawrence, KS

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

Challenging for pure cash flow
Based on $255,000 median price and $1,250/mo median rent
Est. Cap Rate
3.44%
1% Rule
0.49%
Fails
GRM
17.0x
Price / Income
5.2x

Market Data

Median Home Price$255,000
Median Monthly Rent$1,250
Property Tax Rate1.36%
Population98,000
Population Growth0.8% / yr
Median Household Income$48,600
Vacancy Rate4.8%
Annual Appreciation2.6%

Cap Rate Calculator — Lawrence

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.36% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.78%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,092
net operating income
Gross Rent Multiplier
17.0x
High (>15)
1% Rule
0.49%
✗ Fails
Monthly Cash Flow
$591
before debt service
Annual Breakdown
Gross Rental Income$15,000
Less Vacancy−$720
Effective Income$14,280
Less Operating Expenses−$7,188
Net Operating Income$7,092

Cash-on-Cash Return — Lawrence

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

$
$63,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.77%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$71,400
$63,750 down + $7,650 closing
Monthly Mortgage
$1,247
on $191K loan
Monthly Cash Flow
$-522
after all expenses
Annual Cash Flow
$-6,262
before taxes
Cash Flow Breakdown
Monthly Rent$1,250
Less Expenses−$525
Less Mortgage−$1,247
Monthly Cash Flow$-522

Is Lawrence a Good Place to Invest in Rental Property?

Lawrence, KS has a population of 98,000 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 $255,000 paired with median rents of $1,250/mo produces an estimated cap rate of 3.44%.

Property taxes at 1.36% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 5.2x, homes cost about 5.2 times the local median income of $48,600. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.6% 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, Lawrence 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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