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Cap Rate Analysis: Richmond, VA

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

Challenging for pure cash flow
Based on $320,000 median price and $1,480/mo median rent
Est. Cap Rate
3.66%
1% Rule
0.46%
Fails
GRM
18.0x
Price / Income
6.3x

Market Data

Median Home Price$320,000
Median Monthly Rent$1,480
Property Tax Rate0.82%
Population229,233
Population Growth1.1% / yr
Median Household Income$50,400
Vacancy Rate4.9%
Annual Appreciation3.4%

Cap Rate Calculator — Richmond

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.82% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.06%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,786
net operating income
Gross Rent Multiplier
18.0x
High (>15)
1% Rule
0.46%
✗ Fails
Monthly Cash Flow
$815
before debt service
Annual Breakdown
Gross Rental Income$17,760
Less Vacancy−$870
Effective Income$16,890
Less Operating Expenses−$7,104
Net Operating Income$9,786

Cash-on-Cash Return — Richmond

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

$
$80,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.46%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$89,600
$80,000 down + $9,600 closing
Monthly Mortgage
$1,565
on $240K loan
Monthly Cash Flow
$-707
after all expenses
Annual Cash Flow
$-8,479
before taxes
Cash Flow Breakdown
Monthly Rent$1,480
Less Expenses−$622
Less Mortgage−$1,565
Monthly Cash Flow$-707

Is Richmond a Good Place to Invest in Rental Property?

Richmond, VA has a population of 229,233 and has been growing at 1.1% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $320,000 paired with median rents of $1,480/mo produces an estimated cap rate of 3.66%.

Property taxes at 0.82% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.9% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 6.3x, homes cost about 6.3 times the local median income of $50,400. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.4% 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, Richmond 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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