Atchison, KS Cap Rate 5.74%
Atchison is one of the most affordable markets in the country in the Midwest with a small but investable metro of 50,000. At a 5.74% estimated cap rate, this is a solid market where rents of $1,220/mo lag behind home prices. With a median home price of $175,000 and steady population growth supports long-term rental demand, Atchison stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Atchison
Atchison's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $175,000, the $1,220/mo rent produces only $837/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($35K at 7%) would result in approximately $-94/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 12.0x gross rent multiplier and 5.3% vacancy rate position Atchison as a value-oriented market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 8.2% before financing leverage.
Deal Modeling & Scenarios for Atchison
All figures below are computed from Atchison's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 1.38% effective rate on the $175,000 median price, the annual tax bill is $2,415 — that's above national average (+30% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Atchison continues appreciating at 2.5%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $175K | $1,220 | 5.7% |
| Year 1 | $179K | $1,257 | 5.8% |
| Year 2 | $184K | $1,294 | 5.8% |
| Year 3 | $188K | $1,333 | 5.8% |
| Year 4 | $193K | $1,373 | 5.9% |
| Year 5 | $198K | $1,414 | 5.9% |
Three Financing Scenarios
Same median-priced Atchison property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $175K | $837 | $10,049 | 5.7% |
| 20% down conventional @ 7% | $40K | $-94 | $-1,123 | -2.8% |
| 25% down DSCR @ 8.5% | $51K | $-172 | $-2,063 | -4.1% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $131K | $1,037 | $7,457 | 5.7% | $621 |
| At median | $175K | $1,220 | $8,407 | 4.8% | $701 |
| Above median (~125% price) | $219K | $1,403 | $9,356 | 4.3% | $780 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Atchison's historical appreciation rate of 2.5%:
On a $35K down payment, that's a 79.7% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Atchison
Automated checks against the underlying data — surface only the risks that actually apply to Atchison, not generic boilerplate:
Cap Rate Calculator — Atchison
Pre-filled with Atchison medians. Adjust to match a specific property.
Cash-on-Cash Return — Atchison
Factor in financing to see your actual return on invested capital in Atchison.
Is Atchison a Good Place to Invest in Rental Property?
Atchison, KS has a population of 50,000 and has been growing at 0.7% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $175,000 paired with median rents of $1,220/mo produces an estimated cap rate of 5.74%.
Property taxes at 1.38% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.3% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.2x, homes cost about 3.2 times the local median income of $55,200. 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 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: Atchison presents moderate opportunities. Cap rates near 5.74% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.