Cary, NC Cap Rate 2.86%
Cary is the premier suburban anchor of the Research Triangle — anchored by SAS Institute's world headquarters (the largest US privately-held software company), the broader RTP / Raleigh / Durham professional employment base, and consistently top-ranked school districts. The 2.86% cap rate at a $430,000 median price reflects premium positioning. The 0.38% rent-to-price ratio sits below the 1% rule. Population growth at 2.4%/yr is among the stronger Research Triangle numbers.
Employment is anchored by SAS Institute (the major privately-held analytics-software company headquartered on a massive Cary campus — one of the larger US privately-held software companies, consistently ranked among the best US workplaces, with sustained engineer-and-data-scientist employment), the broader Research Triangle Park employer base (most working Cary residents commute to the RTP, Raleigh, or Durham professional centers — IBM, Cisco, Lenovo, GlaxoSmithKline, Biogen, plus the broader tech and life-sciences cluster), MetLife's major Cary operations (the major insurance company has continued expanding Cary tech operations), Epic Games (the Fortnite / Unreal Engine maker has continued Cary operations), the broader WakeMed Cary Hospital, the broader Wake County government, and the broader Wake County Public Schools (consistently among the highest-ranked US public school districts). Submarkets stratify cleanly: the historic downtown Cary is walkable urban with strong appreciation; the broader Preston and broader West Cary master-planned communities are premium suburban-school; the broader Apex south is the sister suburb with similar premium pricing; the broader Cary extends with continuing new construction.
North Carolina property tax at 0.77% is moderate, with Wake County's reassessment cycle being multi-year. NC state income tax is a flat ~4.5%. Insurance is reasonable. The structural advantages: SAS Institute is genuinely one of the more durable single-anchor employers possible (privately-held with the founder-led structure providing decades of operational stability; Cary HQ has expanded continuously); the broader Research Triangle in-migration has been continuous for 25+ years; Wake County schools provide sustained family-rental demand; NC tax structure is among the more favorable Southeast options. The structural risks: pricing has compressed cap rates well below national averages; the broader Research Triangle housing supply has been challenged; SAS Institute's broader corporate trajectory (the company has periodically discussed going public — major structural changes possible) matters for white-collar employment concentration. For investors who want premier Research Triangle exposure with premium-school anchor, Cary is the most defensible RTP-suburb option.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Cary
Cary's 0.4% rent-to-price ratio is well below the 1% rule. At median prices of $430,000, the $1,650/mo rent produces only $1,025/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 ($86K at 7%) would result in approximately $-1,263/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 21.7x gross rent multiplier and 3.8% vacancy rate position Cary as a growth-dependent market. With annual appreciation at 3.4%, total returns (cash flow + equity growth) run approximately 6.3% before financing leverage.
Deal Modeling & Scenarios for Cary
All figures below are computed from Cary's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.77% effective rate on the $430,000 median price, the annual tax bill is $3,311 — that's below national average (-27% 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 Cary continues appreciating at 3.4%/yr while rents grow at a conservative 3%/yr, cap rate compresses as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $430K | $1,650 | 2.9% |
| Year 1 | $445K | $1,700 | 2.8% |
| Year 2 | $460K | $1,750 | 2.8% |
| Year 3 | $475K | $1,803 | 2.8% |
| Year 4 | $492K | $1,857 | 2.8% |
| Year 5 | $508K | $1,913 | 2.8% |
Three Financing Scenarios
Same median-priced Cary 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 | $430K | $1,025 | $12,297 | 2.9% |
| 20% down conventional @ 7% | $99K | $-1,263 | $-15,155 | -15.3% |
| 25% down DSCR @ 8.5% | $125K | $-1,455 | $-17,464 | -14.0% |
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:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $323K | $1,403 | $9,729 | 3.0% | $811 |
| At median | $430K | $1,650 | $10,849 | 2.5% | $904 |
| Above median (~125% price) | $538K | $1,897 | $11,968 | 2.2% | $997 |
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 Cary's historical appreciation rate of 3.4%:
On a $86K down payment, that's a 32.9% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Cary
Automated checks against the underlying data — surface only the risks that actually apply to Cary, not generic boilerplate:
Cap Rate Calculator — Cary
Pre-filled with Cary medians. Adjust to match a specific property.
Cash-on-Cash Return — Cary
Factor in financing to see your actual return on invested capital in Cary.
Is Cary a Good Place to Invest in Rental Property?
Cary, NC has a population of 178,000 and has been growing at 2.4% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $430,000 paired with median rents of $1,650/mo produces an estimated cap rate of 2.86%.
Property taxes at 0.77% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 3.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 4.1x, homes cost about 4.1 times the local median income of $104,000. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 3.4% 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, Cary 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.