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Cap Rate Analysis: Medford, OR

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

Challenging for pure cash flow
Based on $355,000 median price and $1,450/mo median rent
Est. Cap Rate
2.94%
1% Rule
0.41%
Fails
GRM
20.4x
Price / Income
7.4x

Market Data

Median Home Price$355,000
Median Monthly Rent$1,450
Property Tax Rate0.92%
Population88,000
Population Growth1% / yr
Median Household Income$48,200
Vacancy Rate5%
Annual Appreciation2.6%

Cap Rate Calculator — Medford

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.92% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.46%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,718
net operating income
Gross Rent Multiplier
20.4x
High (>15)
1% Rule
0.41%
✗ Fails
Monthly Cash Flow
$727
before debt service
Annual Breakdown
Gross Rental Income$17,400
Less Vacancy−$870
Effective Income$16,530
Less Operating Expenses−$7,812
Net Operating Income$8,718

Cash-on-Cash Return — Medford

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

$
$88,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.80%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$99,400
$88,750 down + $10,650 closing
Monthly Mortgage
$1,736
on $266K loan
Monthly Cash Flow
$-895
after all expenses
Annual Cash Flow
$-10,737
before taxes
Cash Flow Breakdown
Monthly Rent$1,450
Less Expenses−$609
Less Mortgage−$1,736
Monthly Cash Flow$-895

Is Medford a Good Place to Invest in Rental Property?

Medford, OR has a population of 88,000 and has been growing at 1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $355,000 paired with median rents of $1,450/mo produces an estimated cap rate of 2.94%.

Property taxes at 0.92% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 7.4x, homes cost about 7.4 times the local median income of $48,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. 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, Medford 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 Medford
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