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Rental Property ROI Calculator

Test a rental before you buy: enter the price, rent, loan and running costs to see monthly cash flow, cap rate and cash-on-cash return. Choose a state to fill in its median home value, two-bedroom Fair Market Rent and property tax rate, then replace them with the deal in front of you.

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Adjust values to see instant results

$10,000$10,000,000
0100%
015%
540

Additional Details

$100$50,000
05%

Pre-filled: U.S. effective rate on owner-occupied housing, Census ACS 2024 5-year

$0$20,000
030%

Additional Details

030%
020%

Monthly Cash Flow

-$500.73

Estimated • Based on your inputs

Annual Cash Flow

-$6,008.71

Cash-on-Cash Return

-8.71%

Cap rate: 4.4% (net operating income ÷ purchase price).
Cash-on-cash: -8.7% (yearly cash flow after the mortgage ÷ cash invested).

Detailed Breakdown

Cap Rate4.38%
Monthly Mortgage$1,596.73
2%
Effective Monthly Income$1,840.00
2%
Total Monthly Expenses$2,340.73
3%
Total Cash Invested$69,000.00
92%

Investment Projection

$7k$57k$107k$157k$207kYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Total Return
Cumulative Cash Flow
Equity

10-Year Projection

YearCash FlowCumulativeEquityTotal Return
1-$6,009-$6,009$71,438$5,429
2-$5,659-$11,668$83,322$11,654
3-$5,303-$16,971$95,673$18,703
4-$4,939-$21,910$108,514$26,604
5-$4,568-$26,479$121,866$35,388
6-$4,190-$30,669$135,756$45,087
7-$3,804-$34,473$150,208$55,735
8-$3,411-$37,884$165,251$67,367
9-$3,009-$40,894$180,913$80,020
10-$2,600-$43,494$197,225$93,732

Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.

How this calculator works

Rent collected is the monthly rent less the vacancy allowance. Costs are the principal and interest on the loan (standard amortization), property tax at your rate on the price, insurance, maintenance as a share of the full rent and management as a share of the rent collected. Cash flow is rent collected minus costs. The cap rate is a year of rent collected less operating costs (everything but the loan) divided by the price, so it ignores financing; cash-on-cash return divides a year of cash flow by the cash you put in, the down payment plus closing costs taken as 3% of the price. The 10-year projection raises rent 2% and the value 3% a year. Income tax, depreciation and capital expenditures beyond the maintenance allowance are not modeled.

Source: Zillow ZHVI (June 2026), HUD FY2027 Fair Market Rents and Tax Foundation effective rates (state picker and table) checked

Rental returns at the median home and Fair Market Rent, by state

Each row buys the state's median-valued home and rents it at the two-bedroom Fair Market Rent, with 20% down at 7% for 30 years, 8% vacancy, 10% maintenance, 10% management and insurance at 0.5% of the price. Gross yield is a year of rent divided by the price.

State Median price2-bedroom FMRGross yieldCap rateCash flow per month
Alabama $242,000$1,1755.8%3.4%-$608
Alaska $401,000$1,5394.6%1.9%-$1,495
Arizona $423,000$1,6194.6%2.4%-$1,418
Arkansas $229,000$1,0735.6%3.0%-$640
California $776,000$2,7154.2%1.9%-$2,930
Colorado $543,000$1,9444.3%2.1%-$1,927
Connecticut $455,000$2,0395.4%1.9%-$1,711
Delaware $412,000$1,7535.1%2.7%-$1,274
Florida $378,000$2,0056.4%3.4%-$955
Georgia $335,000$1,5285.5%2.7%-$1,031
Hawaii $837,000$2,4873.6%1.8%-$3,195
Idaho $482,000$1,3723.4%1.5%-$1,968
Illinois $299,000$1,7527.0%2.7%-$909
Indiana $262,000$1,3206.0%3.1%-$709
Iowa $241,000$1,1255.6%2.2%-$831
Kansas $253,000$1,2135.8%2.5%-$824
Kentucky $235,000$1,1776.0%3.1%-$637
Louisiana $218,000$1,1776.5%3.7%-$494
Maine $424,000$1,7555.0%2.1%-$1,502
Maryland $436,000$2,1045.8%2.8%-$1,305
Massachusetts $673,000$2,5984.6%1.9%-$2,532
Michigan $270,000$1,3816.1%2.8%-$812
Minnesota $357,000$1,5325.1%2.2%-$1,231
Mississippi $198,000$1,0956.6%3.8%-$435
Missouri $272,000$1,2665.6%2.7%-$841
Montana $476,000$1,5623.9%1.8%-$1,837
Nebraska $284,000$1,2745.4%2.0%-$1,043
Nevada $448,000$1,6864.5%2.3%-$1,530
New Hampshire $523,000$2,0164.6%1.4%-$2,188
New Jersey $585,000$2,3214.8%1.1%-$2,584
New Mexico $321,000$1,2924.8%2.4%-$1,070
New York $526,000$2,5655.9%2.5%-$1,721
North Carolina $340,000$1,4605.2%2.6%-$1,075
North Dakota $294,000$1,1074.5%1.9%-$1,107
Ohio $252,000$1,2946.2%2.6%-$790
Oklahoma $225,000$1,1416.1%3.1%-$609
Oregon $504,000$1,7104.1%1.7%-$1,988
Pennsylvania $294,000$1,5566.4%2.9%-$863
Rhode Island $517,000$1,9174.4%1.6%-$2,054
South Carolina $309,000$1,3965.4%3.0%-$883
South Dakota $326,000$1,1914.4%1.7%-$1,276
Tennessee $339,000$1,4065.0%2.6%-$1,069
Texas $303,000$1,5176.0%2.5%-$988
Utah $542,000$1,5063.3%1.4%-$2,231
Vermont $402,000$1,8165.4%1.9%-$1,491
Virginia $420,000$1,7915.1%2.4%-$1,380
Washington $603,000$2,1064.2%1.8%-$2,304
West Virginia $183,000$1,0406.8%4.0%-$371
Wisconsin $342,000$1,2754.5%1.4%-$1,411
Wyoming $373,000$1,1073.6%1.6%-$1,500

Median value: Zillow Home Value Index, state series, June 2026. Rent: HUD FY2027 Fair Market Rent, in force 2026-10-01 to 2027-09-30, statewide renter-weighted average for two bedrooms. Property tax: Tax Foundation effective rate on owner-occupied housing (Census ACS 2024 5-year). A Fair Market Rent is generally the 40th-percentile gross rent, tenant-paid utilities included (24 CFR 888.113), not a median or the asking rent of a given unit.

Frequently Asked Questions

What is a good cap rate for a rental property?

It depends on the market and the risk, so compare like with like. Bought at the state median price and let at the two-bedroom Fair Market Rent, with the default costs, the cap rate runs from 1.1% in New Jersey to 4.0% in West Virginia: where prices are high relative to rents, the yield is thin.

Does a rental at the median price cash-flow with a mortgage?

With 20% down at 7% over 30 years and the default vacancy, upkeep, management and insurance, no state's median-priced home earns positive monthly cash flow at its two-bedroom Fair Market Rent. A lower price, a larger down payment or a higher rent changes that; the table shows each state's figures.

How is cash-on-cash return different from cap rate?

Cap rate leaves the loan out; cash-on-cash return counts it. For a $300,000 home rented at $2,000 a month at the U.S. property tax rate, the cap rate is 4.4% and, after a $1,597 monthly mortgage payment, cash-on-cash return is -8.7%.

All Calculators

Arkansas Rental Property ROI Calculator

Free Arkansas rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Arkansas's 0.56% property tax rate.

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California Rental Property ROI Calculator

Free California rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using California's 0.7% property tax rate.

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Delaware Rental Property ROI Calculator

Free Delaware rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Delaware's 0.54% property tax rate.

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Florida Rental Property ROI Calculator

Free Florida rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Florida's 0.78% property tax rate.

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Georgia Rental Property ROI Calculator

Free Georgia rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Georgia's 0.79% property tax rate.

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Hawaii Rental Property ROI Calculator

Free Hawaii rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Hawaii's 0.29% property tax rate.

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Idaho Rental Property ROI Calculator

Free Idaho rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Idaho's 0.5% property tax rate.

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Iowa Rental Property ROI Calculator

Free Iowa rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Iowa's 1.33% property tax rate.

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Kentucky Rental Property ROI Calculator

Free Kentucky rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Kentucky's 0.74% property tax rate.

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Michigan Rental Property ROI Calculator

Free Michigan rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Michigan's 1.19% property tax rate.

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Minnesota Rental Property ROI Calculator

Free Minnesota rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Minnesota's 1% property tax rate.

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Nevada Rental Property ROI Calculator

Free Nevada rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Nevada's 0.5% property tax rate.

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New Jersey Rental Property ROI Calculator

Free New Jersey rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using New Jersey's 1.88% property tax rate.

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New Mexico Rental Property ROI Calculator

Free New Mexico rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using New Mexico's 0.63% property tax rate.

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New York Rental Property ROI Calculator

Free New York rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using New York's 1.3% property tax rate.

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North Carolina Rental Property ROI Calculator

Free North Carolina rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using North Carolina's 0.66% property tax rate.

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North Dakota Rental Property ROI Calculator

Free North Dakota rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using North Dakota's 0.92% property tax rate.

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Ohio Rental Property ROI Calculator

Free Ohio rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Ohio's 1.36% property tax rate.

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Oklahoma Rental Property ROI Calculator

Free Oklahoma rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Oklahoma's 0.79% property tax rate.

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Oregon Rental Property ROI Calculator

Free Oregon rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Oregon's 0.81% property tax rate.

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South Carolina Rental Property ROI Calculator

Free South Carolina rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using South Carolina's 0.49% property tax rate.

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Vermont Rental Property ROI Calculator

Free Vermont rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Vermont's 1.51% property tax rate.

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West Virginia Rental Property ROI Calculator

Free West Virginia rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using West Virginia's 0.51% property tax rate.

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Wisconsin Rental Property ROI Calculator

Free Wisconsin rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Wisconsin's 1.32% property tax rate.

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