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Cap Rate Analysis: Bellingham, WA

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

Challenging for pure cash flow
Based on $520,000 median price and $1,850/mo median rent
Est. Cap Rate
2.38%
1% Rule
0.36%
Fails
GRM
23.4x
Price / Income
9.9x

Market Data

Median Home Price$520,000
Median Monthly Rent$1,850
Property Tax Rate0.92%
Population95,000
Population Growth1% / yr
Median Household Income$52,400
Vacancy Rate4%
Annual Appreciation2.8%

Cap Rate Calculator — Bellingham

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.92% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.01%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,452
net operating income
Gross Rent Multiplier
23.4x
High (>15)
1% Rule
0.36%
✗ Fails
Monthly Cash Flow
$871
before debt service
Annual Breakdown
Gross Rental Income$22,200
Less Vacancy−$888
Effective Income$21,312
Less Operating Expenses−$10,860
Net Operating Income$10,452

Cash-on-Cash Return — Bellingham

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

$
$130,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-12.11%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$145,600
$130,000 down + $15,600 closing
Monthly Mortgage
$2,543
on $390K loan
Monthly Cash Flow
$-1,470
after all expenses
Annual Cash Flow
$-17,634
before taxes
Cash Flow Breakdown
Monthly Rent$1,850
Less Expenses−$777
Less Mortgage−$2,543
Monthly Cash Flow$-1,470

Is Bellingham a Good Place to Invest in Rental Property?

Bellingham, WA has a population of 95,000 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 $520,000 paired with median rents of $1,850/mo produces an estimated cap rate of 2.38%.

Property taxes at 0.92% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 9.9x, homes cost about 9.9 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 2.8% 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, Bellingham 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 Bellingham
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