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Cap Rate Analysis: Portland, OR

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

Challenging for pure cash flow
Based on $480,000 median price and $1,780/mo median rent
Est. Cap Rate
2.50%
1% Rule
0.37%
Fails
GRM
22.5x
Price / Income
6.4x

Market Data

Median Home Price$480,000
Median Monthly Rent$1,780
Property Tax Rate0.93%
Population641,162
Population Growth0.4% / yr
Median Household Income$74,800
Vacancy Rate5%
Annual Appreciation2.2%

Cap Rate Calculator — Portland

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.93% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.10%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,068
net operating income
Gross Rent Multiplier
22.5x
High (>15)
1% Rule
0.37%
✗ Fails
Monthly Cash Flow
$839
before debt service
Annual Breakdown
Gross Rental Income$21,360
Less Vacancy−$1,068
Effective Income$20,292
Less Operating Expenses−$10,224
Net Operating Income$10,068

Cash-on-Cash Return — Portland

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

$
$120,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.74%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$134,400
$120,000 down + $14,400 closing
Monthly Mortgage
$2,347
on $360K loan
Monthly Cash Flow
$-1,315
after all expenses
Annual Cash Flow
$-15,779
before taxes
Cash Flow Breakdown
Monthly Rent$1,780
Less Expenses−$748
Less Mortgage−$2,347
Monthly Cash Flow$-1,315

Is Portland a Good Place to Invest in Rental Property?

Portland, OR has a population of 641,162 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 $480,000 paired with median rents of $1,780/mo produces an estimated cap rate of 2.50%.

Property taxes at 0.93% 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 6.4x, homes cost about 6.4 times the local median income of $74,800. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. 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, Portland 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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