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Cap Rate Analysis: Spring Hill, TN

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

Challenging for pure cash flow
Based on $395,000 median price and $1,720/mo median rent
Est. Cap Rate
3.65%
1% Rule
0.44%
Fails
GRM
19.1x
Price / Income
4.8x

Market Data

Median Home Price$395,000
Median Monthly Rent$1,720
Property Tax Rate0.54%
Population68,000
Population Growth4.5% / yr
Median Household Income$82,400
Vacancy Rate4.5%
Annual Appreciation3.6%

Cap Rate Calculator — Spring Hill

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.54% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.11%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,271
net operating income
Gross Rent Multiplier
19.1x
High (>15)
1% Rule
0.44%
✗ Fails
Monthly Cash Flow
$1,023
before debt service
Annual Breakdown
Gross Rental Income$20,640
Less Vacancy−$929
Effective Income$19,711
Less Operating Expenses−$7,440
Net Operating Income$12,271

Cash-on-Cash Return — Spring Hill

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

$
$98,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.13%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$110,600
$98,750 down + $11,850 closing
Monthly Mortgage
$1,931
on $296K loan
Monthly Cash Flow
$-933
after all expenses
Annual Cash Flow
$-11,200
before taxes
Cash Flow Breakdown
Monthly Rent$1,720
Less Expenses−$722
Less Mortgage−$1,931
Monthly Cash Flow$-933

Is Spring Hill a Good Place to Invest in Rental Property?

Spring Hill, TN has a population of 68,000 and has been growing at 4.5% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $395,000 paired with median rents of $1,720/mo produces an estimated cap rate of 3.65%.

Property taxes at 0.54% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.5% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 4.8x, homes cost about 4.8 times the local median income of $82,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.6% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.

Bottom line: At current median prices, Spring Hill 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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