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MarketsOregonAlbany

Cap Rate Analysis: Albany, OR

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

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $405,000 median price and $1,600/mo median rent
Est. Cap Rate
2.78%
1% Rule
0.40%
Fails
GRM
21.1x
Price / Income
7.1x

Market Data

Median Home Price$405,000
Median Monthly Rent$1,600
Property Tax Rate0.94%
Population50,000
Population Growth1% / yr
Median Household Income$57,433
Vacancy Rate4.7%
Annual Appreciation2.5%

Cap Rate Calculator — Albany

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.94% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.33%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,418
net operating income
Gross Rent Multiplier
21.1x
High (>15)
1% Rule
0.40%
✗ Fails
Monthly Cash Flow
$785
before debt service
Annual Breakdown
Gross Rental Income$19,200
Less Vacancy−$902
Effective Income$18,298
Less Operating Expenses−$8,880
Net Operating Income$9,418
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Cash-on-Cash Return — Albany

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

$
$101,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.13%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$113,400
$101,250 down + $12,150 closing
Monthly Mortgage
$1,980
on $304K loan
Monthly Cash Flow
$-1,052
after all expenses
Annual Cash Flow
$-12,627
before taxes
Cash Flow Breakdown
Monthly Rent$1,600
Less Expenses−$672
Less Mortgage−$1,980
Monthly Cash Flow$-1,052

Is Albany a Good Place to Invest in Rental Property?

Albany, OR has a population of 50,000 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 $405,000 paired with median rents of $1,600/mo produces an estimated cap rate of 2.78%.

Property taxes at 0.94% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.7% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 7.1x, homes cost about 7.1 times the local median income of $57,433. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.5% 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, Albany 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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