Branson, MO Cap Rate 4.76%
Branson is a budget-friendly market in the Midwest with a small but investable metro of 50,000. At a 4.76% estimated cap rate, this is a moderate market where rents of $1,480/mo lag behind home prices. With a median home price of $245,000 and population is roughly stable, Branson 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
Market Data
2026 Market Update: Branson
Branson's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $245,000, the $1,480/mo rent produces only $973/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 ($49K at 7%) would result in approximately $-330/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 13.8x gross rent multiplier and 6% vacancy rate position Branson as a value-oriented market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 7.3% before financing leverage.
Deal Modeling & Scenarios for Branson
All figures below are computed from Branson's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 1.25% effective rate on the $245,000 median price, the annual tax bill is $3,063 — that's above national average (+18% 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 Branson 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 | $245K | $1,480 | 4.8% |
| Year 1 | $251K | $1,524 | 4.8% |
| Year 2 | $257K | $1,570 | 4.8% |
| Year 3 | $264K | $1,617 | 4.8% |
| Year 4 | $270K | $1,666 | 4.9% |
| Year 5 | $277K | $1,716 | 4.9% |
Three Financing Scenarios
Same median-priced Branson 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 | $245K | $973 | $11,672 | 4.8% |
| 20% down conventional @ 7% | $56K | $-331 | $-3,969 | -7.0% |
| 25% down DSCR @ 8.5% | $71K | $-440 | $-5,285 | -7.4% |
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) | $184K | $1,258 | $8,743 | 4.8% | $729 |
| At median | $245K | $1,480 | $9,810 | 4.0% | $818 |
| Above median (~125% price) | $306K | $1,702 | $10,878 | 3.6% | $906 |
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 Branson's historical appreciation rate of 2.5%:
On a $49K down payment, that's a 55.2% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Branson
Automated checks against the underlying data — surface only the risks that actually apply to Branson, not generic boilerplate:
Cap Rate Calculator — Branson
Pre-filled with Branson medians. Adjust to match a specific property.
Cash-on-Cash Return — Branson
Factor in financing to see your actual return on invested capital in Branson.
Is Branson a Good Place to Invest in Rental Property?
Branson, MO 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 $245,000 paired with median rents of $1,480/mo produces an estimated cap rate of 4.76%.
Property taxes at 1.25% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.1x, homes cost about 5.1 times the local median income of $48,140. This moderate ratio indicates a balanced rent-vs-buy market. 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: Branson presents moderate opportunities. Cap rates near 4.76% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.