%
CapRateCity
Free cap rate calculators for every US market
MarketsConnecticutBridgeport

Bridgeport, CT Cap Rate: 2.28% — Rental Property Analysis

Bridgeport is the largest city in Connecticut and structurally different from Stamford, Hartford, or New Haven — historically industrial, more working-class, with one of the highest population densities of any Northeast city outside the major metros. The 2.28% cap rate at a $655,000 median price keeps the 0.42% rent-to-price ratio closer to functional than other Fairfield County markets — Bridgeport is the rare CT metro where cash-flow math is closer to working. Population growth at -0.1%/yr is essentially flat.

Employment is anchored by Bridgeport Hospital (part of Yale New Haven Health — a major regional medical center), St. Vincent's Medical Center (part of Hartford HealthCare), the broader healthcare ecosystem, People's United Bank (now part of M&T Bank — formerly headquartered in Bridgeport, with continuing operations), the broader Fairfield County government, the broader Connecticut state government's Bridgeport-area operations, University of Bridgeport, Sacred Heart University in nearby Fairfield, the broader Metro-North commuter base (the New Haven Line connects directly to Grand Central — Bridgeport residents commute to NYC for higher-paying jobs), and a residual manufacturing base (Sikorsky Aircraft helicopter manufacturing in Stratford just east, Stanley Works hand tools). Submarkets stratify dramatically: the Black Rock and North End areas are walkable urban-historic with strong appreciation (Black Rock has been gentrifying steadily); the broader Fairfield (separate municipality, much wealthier) extends west with premium suburban-school rentals; Trumbull and the eastern Bridgeport suburbs are family-school zones; the broader Bridgeport proper (East End, South End, Hollow) offers significantly deeper-value workforce inventory with the operational complexity that comes with older Class C housing.

Connecticut property tax in Bridgeport is on the higher end nationally — the mill rate is among the highest in CT and the broader Northeast, often producing 3%+ effective rates on non-owner-occupied properties. Verify per parcel before underwriting. Connecticut state income tax is graduated with a top rate near 6.99%. CT landlord-tenant law leans tenant-protective with multi-month eviction timelines. Insurance is reasonable. The structural advantages: Metro-North access to NYC at materially lower cost basis than Stamford or White Plains; genuine cash-flow math at the metro median is rare for CT; healthcare employment is durable. The structural risks: per-block variance is significant — Bridgeport proper has had historical fiscal and crime challenges that affect tenant pools in specific zones; the high property tax structure is a real drag on returns; CT regulatory environment requires operator comfort. For local operators with the discipline to underwrite per-zip and per-block, Bridgeport produces genuine cash-flow math — for remote turnkey investors, the operational complexity usually exceeds the headline yield.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $655,000 median price and $2,730/mo median rent
Est. Cap Rate
2.28%
1% Rule
0.42%
Fails
GRM
20.0x
Price / Income
14.2x

Market Data

Median Home Price$655,000
Median Monthly Rent$2,730
Property Tax Rate1.63%
Population148,529
Population Growth-0.1% / yr
Median Household Income$46,200
Vacancy Rate5.8%
Annual Appreciation2.2%

2026 Market Update: Bridgeport

Bridgeport's 0.4% rent-to-price ratio is well below the 1% rule. At median prices of $655,000, the $2,730/mo rent produces only $1,245/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 ($131K at 7%) would result in approximately $-2,240/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 33% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Bridgeport a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.

Deal Modeling & Scenarios for Bridgeport

All figures below are computed from Bridgeport's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.

Property Tax Bill in Real Dollars

Annual$10,677
Monthly$890
% of Gross Rent32.6%

At 1.63% effective rate on the $655,000 median price, the annual tax bill is $10,677 — that's very high (top 15% of US markets) (+54% 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 Bridgeport continues appreciating at 2.2%/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:

YearEst. PriceEst. Rent/MoCap Rate
Today$655K$2,7302.3%
Year 1$669K$2,8122.3%
Year 2$684K$2,8962.3%
Year 3$699K$2,9832.3%
Year 4$715K$3,0732.4%
Year 5$730K$3,1652.4%

Three Financing Scenarios

Same median-priced Bridgeport 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.

ScenarioCash InvestedMonthly Cash FlowAnnual CFCash-on-Cash
All cash$655K$1,245$14,9432.3%
20% down conventional @ 7%$151K$-2,239$-26,872-17.8%
25% down DSCR @ 8.5%$190K$-2,532$-30,389-16.0%

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:

TierPriceRent/MoNOI/YrCap RateMonthly CF
Below median (~75% price)$491K$2,321$11,8082.4%$984
At median$655K$2,730$12,3221.9%$1,027
Above median (~125% price)$819K$3,139$12,8361.6%$1,070

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 Bridgeport's historical appreciation rate of 2.2%:

Cash Flow (5yr)$-134,359
Appreciation$75K
Principal Paydown$39K
Total Return$-19,768

On a $131K down payment, that's a -15.1% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.

Risk Flags Specific to Bridgeport

Automated checks against the underlying data — surface only the risks that actually apply to Bridgeport, not generic boilerplate:

Watch closelyPopulation is declining at -0.1% per year. Tenant demand erodes over multi-year holds in shrinking metros — underwrite with conservative rent growth (0–1%) and elevated vacancy (8–10%).
Watch closelyProperty tax rate of 1.63% is among the highest in the country. Taxes consume a meaningful share of gross rent — see the tax breakdown above. Stress-test for assessment increases.
Watch closelyRent-to-price ratio of 0.42% is well below the 1% rule. Achieving positive cash flow at median prices requires below-market purchases, larger down payments, or value-add strategies.
Worth notingPrice-to-income ratio of 14.2x suggests homeownership is stretched locally — supports rental demand, but limits the buyer pool for any future exit.

Cap Rate Calculator — Bridgeport

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.63% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
1.78%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,672
net operating income
Gross Rent Multiplier
20.0x
High (>15)
1% Rule
0.42%
✗ Fails
Monthly Cash Flow
$973
before debt service
Annual Breakdown
Gross Rental Income$32,760
Less Vacancy−$1,900
Effective Income$30,860
Less Operating Expenses−$19,188
Net Operating Income$11,672
Sponsored
Analyze Deals Faster with DealCheck
Import any property, get instant investment analysis — cap rates, cash flow, rehab estimates, and offer calculations. Used by 350,000+ investors.
Try DealCheck Free →

Cash-on-Cash Return — Bridgeport

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

$
$163,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.60%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$183,400
$163,750 down + $19,650 closing
Monthly Mortgage
$3,203
on $491K loan
Monthly Cash Flow
$-1,620
after all expenses
Annual Cash Flow
$-19,435
before taxes
Cash Flow Breakdown
Monthly Rent$2,730
Less Expenses−$1,147
Less Mortgage−$3,203
Monthly Cash Flow$-1,620

Is Bridgeport a Good Place to Invest in Rental Property?

Bridgeport, CT has a population of 148,529 and has been growing at -0.1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $655,000 paired with median rents of $2,730/mo produces an estimated cap rate of 2.28%.

Property taxes at 1.63% 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 5.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 14.2x, homes cost about 14.2 times the local median income of $46,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.2% 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, Bridgeport 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.

Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.
Analyze Properties →

Bridgeport Investment Guides

Explore Bridgeport Data

Free Download
Top 25 Cash Flow Cities (2026)
See how Bridgeport compares to the best cash flow markets in America.
Get the Report →
Analyze listings in Bridgeport instantly — cap rate, cash flow & more on every Zillow listing
Chrome Extension →
Sponsored
Investor Gear
Google Nest Thermostat
Google
$130
FLIR ONE Gen 3 Thermal Camera
FLIR
$179
Schlage Connect Keypad Deadbolt
Schlage
$229
The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.

Related Cities Near Bridgeport

Similar Markets in the Northeast

Barre, VT$380K · $1,540/mo
2.3%
Elizabeth, NJ$705K · $3,260/mo
2.3%
Paterson, NJ$705K · $3,260/mo
2.2%
Newark, NJ$705K · $3,260/mo
2.2%
Concord, NH$470K · $1,990/mo
2.2%
Run a BRRRR analysis for Bridgeport
Model a buy-rehab-refinance deal with Bridgeport data pre-loaded.
Open BRRRR Calculator →