Bemidji, MN Cap Rate: 4.44% — Rental Property Analysis
Bemidji is a mid-range market in the Midwest with a small but investable metro of 50,000. At a 4.44% estimated cap rate, this is a moderate market where rents of $1,420/mo lag behind home prices. With a median home price of $255,000 and population is roughly stable, Bemidji offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $255,000 median price and $1,420/mo median rent
Est. Cap Rate
4.44%
1% Rule
0.56%
Fails
GRM
15.0x
Price / Income
4.2x
Market Data
Median Home Price$255,000
Median Monthly Rent$1,420
Property Tax Rate1.12%
Population50,000
Population Growth0.5% / yr
Median Household Income$60,800
Vacancy Rate4.8%
Annual Appreciation2.6%
2026 Market Update: Bemidji
Bemidji's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $255,000, the $1,420/mo rent produces only $944/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 ($51K at 7%) would result in approximately $-413/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 15.0x gross rent multiplier and 4.8% vacancy rate position Bemidji as a balanced market. With annual appreciation at 2.6%, total returns (cash flow + equity growth) run approximately 7.0% before financing leverage.
Cap Rate Calculator — Bemidji
Pre-filled with Bemidji medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
1.12% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.64%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,274
net operating income
Gross Rent Multiplier
15.0x
Good (<15)
1% Rule
0.56%
✗ Fails
Monthly Cash Flow
$773
before debt service
Annual Breakdown
Gross Rental Income$17,040
Less Vacancy−$818
Effective Income$16,222
Less Operating Expenses−$6,948
Net Operating Income$9,274
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Factor in financing to see your actual return on invested capital in Bemidji.
$
$63,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.11%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$71,400
$63,750 down + $7,650 closing
Monthly Mortgage
$1,247
on $191K loan
Monthly Cash Flow
$-423
after all expenses
Annual Cash Flow
$-5,074
before taxes
Cash Flow Breakdown
Monthly Rent$1,420
Less Expenses−$596
Less Mortgage−$1,247
Monthly Cash Flow$-423
Is Bemidji a Good Place to Invest in Rental Property?
Bemidji, MN has a population of 50,000 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $255,000 paired with median rents of $1,420/mo produces an estimated cap rate of 4.44%.
Property taxes at 1.12% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 4.2x, homes cost about 4.2 times the local median income of $60,800. 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 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Bemidji presents moderate opportunities. Cap rates near 4.44% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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