Binghamton, NY Cap Rate 5.12%
Binghamton is the largest metro in New York's Southern Tier — historically the IBM birthplace (the company was founded here as the Computing-Tabulating-Recording Company in 1911), with a deep industrial-decline narrative now anchored by SUNY Binghamton and healthcare. The 5.12% cap rate at a $185,000 median price keeps the 0.69% rent-to-price ratio at or above the 1% rule in many submarkets — Binghamton is a genuine cash-flow market. Population growth at -0.3%/yr is negative — Southern Tier NY demographic trajectory has been weak for decades.
Employment is anchored by Binghamton University (SUNY Binghamton — the public research university with ~18K students and a Tier-1 research designation; one of the larger SUNY system flagships), United Health Services (UHS — the dominant regional medical system), Lourdes Hospital, the broader Broome County government, BAE Systems (the major defense electronics operations in Endicott — the legacy IBM Endicott site has been substantially reconfigured into BAE's electronic-systems hub), Lockheed Martin's legacy Binghamton operations, the residual IBM operations (significantly downsized but still present), and a meaningful manufacturing and supplier base. Submarkets stratify cleanly: the historic Whitney Point and Binghamton West Side areas are walkable urban-historic with strong appreciation; the broader Vestal and Endwell suburbs draw professional family rentals at premium pricing; the SUNY Binghamton-adjacent zones are student-heavy with operational complexity tied to August-to-July leasing; the central and parts of Binghamton proper offer deeper-value workforce inventory with the operational complexity that comes with older Class C housing.
New York property tax in Broome County is on the higher end nationally — Southern Tier effective rates often exceed 3%. NY state income tax is graduated with a top rate near 10.9%. NY landlord-tenant law is strongly tenant-protective. Insurance is reasonable but verify winter / freeze deductible structure. The structural advantages: SUNY Binghamton is genuinely durable state-flagship employment; UHS provides white-collar healthcare tenant depth; BAE's defense electronics operations are durable federal-contractor employment; genuine cash-flow math at the median. The structural risks: NY regulatory environment is operator-unfriendly; population trajectory remains weak; high property tax structure is a real drag on returns; older industrial-era housing stock requires honest capex assumptions. For local operators with comfort around NY law, Binghamton produces durable cash-flow math — for remote turnkey investors, the operational complexity and tax structure are meaningful.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Binghamton
Binghamton's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $185,000, the $1,270/mo rent produces only $790/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 ($37K at 7%) would result in approximately $-194/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.
Property taxes consume 21% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Binghamton a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Deal Modeling & Scenarios for Binghamton
All figures below are computed from Binghamton's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 1.72% effective rate on the $185,000 median price, the annual tax bill is $3,182 — that's very high (top 15% of US markets) (+62% 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 Binghamton continues appreciating at 1.7%/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 | $185K | $1,270 | 5.1% |
| Year 1 | $188K | $1,308 | 5.2% |
| Year 2 | $191K | $1,347 | 5.3% |
| Year 3 | $195K | $1,388 | 5.3% |
| Year 4 | $198K | $1,429 | 5.4% |
| Year 5 | $201K | $1,472 | 5.5% |
Three Financing Scenarios
Same median-priced Binghamton 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 | $185K | $790 | $9,481 | 5.1% |
| 20% down conventional @ 7% | $43K | $-194 | $-2,330 | -5.5% |
| 25% down DSCR @ 8.5% | $54K | $-277 | $-3,323 | -6.2% |
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) | $139K | $1,080 | $7,012 | 5.1% | $584 |
| At median | $185K | $1,270 | $7,782 | 4.2% | $649 |
| Above median (~125% price) | $231K | $1,461 | $8,562 | 3.7% | $714 |
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 Binghamton's historical appreciation rate of 1.7%:
On a $37K down payment, that's a 42.5% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Binghamton
Automated checks against the underlying data — surface only the risks that actually apply to Binghamton, not generic boilerplate:
Cap Rate Calculator — Binghamton
Pre-filled with Binghamton medians. Adjust to match a specific property.
Cash-on-Cash Return — Binghamton
Factor in financing to see your actual return on invested capital in Binghamton.
Is Binghamton a Good Place to Invest in Rental Property?
Binghamton, NY has a population of 48,000 and has been growing at -0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $185,000 paired with median rents of $1,270/mo produces an estimated cap rate of 5.12%.
Property taxes at 1.72% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 7.2% runs above average, which increases cash flow volatility and warrants conservative underwriting.
At a price-to-income ratio of 5.0x, homes cost about 5.0 times the local median income of $36,800. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 1.7% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Binghamton presents moderate opportunities. Cap rates near 5.12% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.