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Cap Rate Analysis: Charlotte, NC

Investment metrics, interactive calculators, and data-driven analysis for Charlotte rental properties.

Challenging for pure cash flow
Based on $350,000 median price and $1,550/mo median rent
Est. Cap Rate
3.41%
1% Rule
0.44%
Fails
GRM
18.8x
Price / Income
5.3x

Market Data

Median Home Price$350,000
Median Monthly Rent$1,550
Property Tax Rate0.83%
Population897,720
Population Growth2.3% / yr
Median Household Income$66,200
Vacancy Rate5.1%
Annual Appreciation3.9%

Cap Rate Calculator — Charlotte

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.83% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.86%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,995
net operating income
Gross Rent Multiplier
18.8x
High (>15)
1% Rule
0.44%
✗ Fails
Monthly Cash Flow
$833
before debt service
Annual Breakdown
Gross Rental Income$18,600
Less Vacancy−$949
Effective Income$17,651
Less Operating Expenses−$7,656
Net Operating Income$9,995

Cash-on-Cash Return — Charlotte

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

$
$87,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.95%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$98,000
$87,500 down + $10,500 closing
Monthly Mortgage
$1,711
on $263K loan
Monthly Cash Flow
$-812
after all expenses
Annual Cash Flow
$-9,748
before taxes
Cash Flow Breakdown
Monthly Rent$1,550
Less Expenses−$651
Less Mortgage−$1,711
Monthly Cash Flow$-812

Is Charlotte a Good Place to Invest in Rental Property?

Charlotte, NC has a population of 897,720 and has been growing at 2.3% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $350,000 paired with median rents of $1,550/mo produces an estimated cap rate of 3.41%.

Property taxes at 0.83% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.1% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.3x, homes cost about 5.3 times the local median income of $66,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.9% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.

Bottom line: At current median prices, Charlotte 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.

Run a BRRRR analysis for Charlotte
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