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Cap Rate Analysis: Anchorage, AK

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

Challenging for pure cash flow
Based on $340,000 median price and $1,520/mo median rent
Est. Cap Rate
3.21%
1% Rule
0.45%
Fails
GRM
18.6x
Price / Income
4.4x

Market Data

Median Home Price$340,000
Median Monthly Rent$1,520
Property Tax Rate1.04%
Population291,247
Population Growth0.1% / yr
Median Household Income$76,800
Vacancy Rate5.8%
Annual Appreciation1.5%

Cap Rate Calculator — Anchorage

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.04% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.65%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,998
net operating income
Gross Rent Multiplier
18.6x
High (>15)
1% Rule
0.45%
✗ Fails
Monthly Cash Flow
$750
before debt service
Annual Breakdown
Gross Rental Income$18,240
Less Vacancy−$1,058
Effective Income$17,182
Less Operating Expenses−$8,184
Net Operating Income$8,998

Cash-on-Cash Return — Anchorage

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

$
$85,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.84%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$95,200
$85,000 down + $10,200 closing
Monthly Mortgage
$1,662
on $255K loan
Monthly Cash Flow
$-780
after all expenses
Annual Cash Flow
$-9,365
before taxes
Cash Flow Breakdown
Monthly Rent$1,520
Less Expenses−$638
Less Mortgage−$1,662
Monthly Cash Flow$-780

Is Anchorage a Good Place to Invest in Rental Property?

Anchorage, AK has a population of 291,247 and has been growing at 0.1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $340,000 paired with median rents of $1,520/mo produces an estimated cap rate of 3.21%.

Property taxes at 1.04% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.4x, homes cost about 4.4 times the local median income of $76,800. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 1.5% 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, Anchorage 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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