Blacksburg, VA Cap Rate: 5.37% — Rental Property Analysis
Blacksburg is a mid-range market in the South with a small but investable metro of 50,000. At a 5.37% estimated cap rate, this is a moderate market where rents of $1,730/mo lag behind home prices. With a median home price of $280,000 and steady population growth supports long-term rental demand, Blacksburg 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 $280,000 median price and $1,730/mo median rent
Est. Cap Rate
5.37%
1% Rule
0.62%
Fails
GRM
13.5x
Price / Income
4.9x
Market Data
Median Home Price$280,000
Median Monthly Rent$1,730
Property Tax Rate0.86%
Population50,000
Population Growth0.7% / yr
Median Household Income$57,250
Vacancy Rate5.2%
Annual Appreciation2.9%
2026 Market Update: Blacksburg
Blacksburg's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $280,000, the $1,730/mo rent produces only $1,253/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 ($56K at 7%) would result in approximately $-237/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 13.5x gross rent multiplier and 5.2% vacancy rate position Blacksburg as a value-oriented market. With annual appreciation at 2.9%, total returns (cash flow + equity growth) run approximately 8.3% before financing leverage.
Cap Rate Calculator — Blacksburg
Pre-filled with Blacksburg medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.86% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.44%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,420
net operating income
Gross Rent Multiplier
13.5x
Good (<15)
1% Rule
0.62%
✗ Fails
Monthly Cash Flow
$1,035
before debt service
Annual Breakdown
Gross Rental Income$20,760
Less Vacancy−$1,080
Effective Income$19,680
Less Operating Expenses−$7,260
Net Operating Income$12,420
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Factor in financing to see your actual return on invested capital in Blacksburg.
$
$70,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.60%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$78,400
$70,000 down + $8,400 closing
Monthly Mortgage
$1,369
on $210K loan
Monthly Cash Flow
$-366
after all expenses
Annual Cash Flow
$-4,393
before taxes
Cash Flow Breakdown
Monthly Rent$1,730
Less Expenses−$727
Less Mortgage−$1,369
Monthly Cash Flow$-366
Is Blacksburg a Good Place to Invest in Rental Property?
Blacksburg, VA 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 $280,000 paired with median rents of $1,730/mo produces an estimated cap rate of 5.37%.
Property taxes at 0.86% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.9x, homes cost about 4.9 times the local median income of $57,250. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.9% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Blacksburg presents moderate opportunities. Cap rates near 5.37% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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