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Cap Rate Analysis: Lincoln, NE

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

Challenging for pure cash flow
Based on $225,000 median price and $1,180/mo median rent
Est. Cap Rate
3.57%
1% Rule
0.52%
Fails
GRM
15.9x
Price / Income
4.0x

Market Data

Median Home Price$225,000
Median Monthly Rent$1,180
Property Tax Rate1.62%
Population295,222
Population Growth0.9% / yr
Median Household Income$56,800
Vacancy Rate4.8%
Annual Appreciation2.6%

Cap Rate Calculator — Lincoln

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.62% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.84%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,388
net operating income
Gross Rent Multiplier
15.9x
High (>15)
1% Rule
0.52%
✗ Fails
Monthly Cash Flow
$532
before debt service
Annual Breakdown
Gross Rental Income$14,160
Less Vacancy−$680
Effective Income$13,480
Less Operating Expenses−$7,092
Net Operating Income$6,388

Cash-on-Cash Return — Lincoln

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

$
$56,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.93%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$63,000
$56,250 down + $6,750 closing
Monthly Mortgage
$1,100
on $169K loan
Monthly Cash Flow
$-416
after all expenses
Annual Cash Flow
$-4,993
before taxes
Cash Flow Breakdown
Monthly Rent$1,180
Less Expenses−$496
Less Mortgage−$1,100
Monthly Cash Flow$-416

Is Lincoln a Good Place to Invest in Rental Property?

Lincoln, NE has a population of 295,222 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $225,000 paired with median rents of $1,180/mo produces an estimated cap rate of 3.57%.

Property taxes at 1.62% 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 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 4.0x, homes cost about 4.0 times the local median income of $56,800. 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 2.6% 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, Lincoln 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 Lincoln
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