%
CapRateCity
Free cap rate calculators for every US market
← All markets

Cap Rate Analysis: Sacramento, CA

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

Challenging for pure cash flow
Based on $445,000 median price and $1,780/mo median rent
Est. Cap Rate
3.03%
1% Rule
0.40%
Fails
GRM
20.8x
Price / Income
6.5x

Market Data

Median Home Price$445,000
Median Monthly Rent$1,780
Property Tax Rate0.74%
Population528,001
Population Growth1% / yr
Median Household Income$68,400
Vacancy Rate4.8%
Annual Appreciation3%

Cap Rate Calculator — Sacramento

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.74% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.57%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,431
net operating income
Gross Rent Multiplier
20.8x
High (>15)
1% Rule
0.40%
✗ Fails
Monthly Cash Flow
$953
before debt service
Annual Breakdown
Gross Rental Income$21,360
Less Vacancy−$1,025
Effective Income$20,335
Less Operating Expenses−$8,904
Net Operating Income$11,431

Cash-on-Cash Return — Sacramento

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

$
$111,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.02%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$124,600
$111,250 down + $13,350 closing
Monthly Mortgage
$2,176
on $334K loan
Monthly Cash Flow
$-1,144
after all expenses
Annual Cash Flow
$-13,726
before taxes
Cash Flow Breakdown
Monthly Rent$1,780
Less Expenses−$748
Less Mortgage−$2,176
Monthly Cash Flow$-1,144

Is Sacramento a Good Place to Invest in Rental Property?

Sacramento, CA has a population of 528,001 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 $445,000 paired with median rents of $1,780/mo produces an estimated cap rate of 3.03%.

Property taxes at 0.74% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. 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 6.5x, homes cost about 6.5 times the local median income of $68,400. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3% 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, Sacramento 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 Sacramento
Model a buy-rehab-refinance deal with Sacramento data pre-loaded.
Open BRRRR Calculator →