Burlington, NC Cap Rate: 3.83% — Rental Property Analysis
Burlington is a mid-range market in the South with a small but investable metro of 50,000. At a 3.83% estimated cap rate, this is a appreciation-focused market where rents of $1,380/mo lag behind home prices. With a median home price of $290,000 and steady population growth supports long-term rental demand, Burlington is primarily an appreciation play that requires creative strategies to generate positive cash flow.
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 $290,000 median price and $1,380/mo median rent
Est. Cap Rate
3.83%
1% Rule
0.48%
Fails
GRM
17.5x
Price / Income
5.0x
Market Data
Median Home Price$290,000
Median Monthly Rent$1,380
Property Tax Rate0.78%
Population50,000
Population Growth1.5% / yr
Median Household Income$58,267
Vacancy Rate5.3%
Annual Appreciation3.2%
2026 Market Update: Burlington
Burlington's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $290,000, the $1,380/mo rent produces only $925/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 ($58K at 7%) would result in approximately $-618/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 17.5x gross rent multiplier and 5.3% vacancy rate position Burlington as a balanced market. With annual appreciation at 3.2%, total returns (cash flow + equity growth) run approximately 7.0% before financing leverage.
Cap Rate Calculator — Burlington
Pre-filled with Burlington medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.78% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.20%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,274
net operating income
Gross Rent Multiplier
17.5x
High (>15)
1% Rule
0.48%
✗ Fails
Monthly Cash Flow
$773
before debt service
Annual Breakdown
Gross Rental Income$16,560
Less Vacancy−$878
Effective Income$15,682
Less Operating Expenses−$6,408
Net Operating Income$9,274
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.
Factor in financing to see your actual return on invested capital in Burlington.
$
$72,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.13%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$81,200
$72,500 down + $8,700 closing
Monthly Mortgage
$1,418
on $218K loan
Monthly Cash Flow
$-618
after all expenses
Annual Cash Flow
$-7,415
before taxes
Cash Flow Breakdown
Monthly Rent$1,380
Less Expenses−$580
Less Mortgage−$1,418
Monthly Cash Flow$-618
Is Burlington a Good Place to Invest in Rental Property?
Burlington, NC has a population of 50,000 and has been growing at 1.5% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $290,000 paired with median rents of $1,380/mo produces an estimated cap rate of 3.83%.
Property taxes at 0.78% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.3% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.0x, homes cost about 5.0 times the local median income of $58,267. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.2% 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, Burlington 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.