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Cap Rate Analysis: Worcester, MA

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

Challenging for pure cash flow
Based on $355,000 median price and $1,650/mo median rent
Est. Cap Rate
3.33%
1% Rule
0.46%
Fails
GRM
17.9x
Price / Income
6.8x

Market Data

Median Home Price$355,000
Median Monthly Rent$1,650
Property Tax Rate1.18%
Population206,518
Population Growth0.6% / yr
Median Household Income$52,400
Vacancy Rate4.8%
Annual Appreciation3%

Cap Rate Calculator — Worcester

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.18% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.73%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,682
net operating income
Gross Rent Multiplier
17.9x
High (>15)
1% Rule
0.46%
✗ Fails
Monthly Cash Flow
$807
before debt service
Annual Breakdown
Gross Rental Income$19,800
Less Vacancy−$950
Effective Income$18,850
Less Operating Expenses−$9,168
Net Operating Income$9,682

Cash-on-Cash Return — Worcester

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

$
$88,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.40%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
$-779
after all expenses
Annual Cash Flow
$-9,345
before taxes
Cash Flow Breakdown
Monthly Rent$1,650
Less Expenses−$693
Less Mortgage−$1,736
Monthly Cash Flow$-779

Is Worcester a Good Place to Invest in Rental Property?

Worcester, MA has a population of 206,518 and has been growing at 0.6% 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 $1,650/mo produces an estimated cap rate of 3.33%.

Property taxes at 1.18% fall within the national average range and shouldn't present unusual challenges. 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 6.8x, homes cost about 6.8 times the local median income of $52,400. 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, Worcester 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 Worcester
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