Cheyenne, WY Cap Rate 3.08%
Cheyenne is the capital of Wyoming and structurally unique — anchored by F.E. Warren Air Force Base (one of three US ICBM bases controlling the Minuteman III intercontinental ballistic missile force), state government, and broader Front Range commuter spillover from Northern Colorado. The 3.08% cap rate at a $380,000 median price keeps the 0.39% rent-to-price ratio close to functional. Population growth at 0.8%/yr is steady, helped by both Front Range spillover and continued F.E. Warren employment.
Employment is anchored by F.E. Warren Air Force Base (the home of the 90th Missile Wing — one of three US Air Force ICBM wings, with continuing modernization investment via the Sentinel/LGM-35 program replacing the legacy Minuteman III; collectively one of the larger US Air Force employment concentrations in the Rocky Mountain region, with the broader Department of Defense civilian and contractor workforce), Wyoming state government (Cheyenne is the state capital — federal, state, and Laramie County government collectively the largest employment cluster), Cheyenne Regional Medical Center, the broader Wyoming Department of Transportation and BNSF Railway operations, the broader Front Range commuter base (some Cheyenne residents commute to Fort Collins / Loveland / Greeley area in Colorado for higher-paying jobs, with Wyoming's no-state-income-tax structure providing the arbitrage), and a meaningful agricultural and energy-services base. Submarkets stratify cleanly: the historic Storey Boulevard area is walkable urban-historic with strong appreciation; the broader West Cheyenne and the southwest suburbs draw professional family rentals; the F.E. Warren-adjacent zones have BAH-supported military family rentals; the broader Laramie County extends with newer construction.
Wyoming has no state income tax (a structural cash-flow advantage). Property tax at 0.61% is among the lowest in the country — Wyoming has one of the more favorable tax structures of any US state, particularly for residential property. Insurance is reasonable but verify winter / freeze deductible structure (Cheyenne has heavy snowfall and freeze exposure). The structural advantages: F.E. Warren is genuinely irreplaceable federal infrastructure — the ICBM mission is core US strategic deterrent; the Sentinel modernization program represents multi-decade continued investment; state government employment is genuinely durable; Wyoming's no-income-tax structure is a permanent structural advantage; cost basis is materially below comparable Colorado markets across the state line. The structural risks: any major ICBM-program decision (though extremely unlikely given current strategic posture) would affect base employment; the broader Wyoming economy is energy-sensitive. For investors who want military and state-capital durability plus the no-income-tax structure at a low cost basis, Cheyenne is one of the most defensible smaller western markets.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Cheyenne
Cheyenne's 0.4% rent-to-price ratio is well below the 1% rule. At median prices of $380,000, the $1,500/mo rent produces only $976/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 ($76K at 7%) would result in approximately $-1,046/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 21.1x gross rent multiplier and 5.2% vacancy rate position Cheyenne as a growth-dependent market. With annual appreciation at 2.4%, total returns (cash flow + equity growth) run approximately 5.5% before financing leverage.
Deal Modeling & Scenarios for Cheyenne
All figures below are computed from Cheyenne's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.61% effective rate on the $380,000 median price, the annual tax bill is $2,318 — that's below national average (-42% 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 Cheyenne continues appreciating at 2.4%/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 | $380K | $1,500 | 3.1% |
| Year 1 | $389K | $1,545 | 3.1% |
| Year 2 | $398K | $1,591 | 3.1% |
| Year 3 | $408K | $1,639 | 3.1% |
| Year 4 | $418K | $1,688 | 3.2% |
| Year 5 | $428K | $1,739 | 3.2% |
Three Financing Scenarios
Same median-priced Cheyenne 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 | $380K | $976 | $11,706 | 3.1% |
| 20% down conventional @ 7% | $87K | $-1,046 | $-12,553 | -14.4% |
| 25% down DSCR @ 8.5% | $110K | $-1,216 | $-14,594 | -13.2% |
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) | $285K | $1,275 | $9,178 | 3.2% | $765 |
| At median | $380K | $1,500 | $10,346 | 2.7% | $862 |
| Above median (~125% price) | $475K | $1,725 | $11,514 | 2.4% | $960 |
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 Cheyenne's historical appreciation rate of 2.4%:
On a $76K down payment, that's a 10.4% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Cheyenne
Automated checks against the underlying data — surface only the risks that actually apply to Cheyenne, not generic boilerplate:
Cap Rate Calculator — Cheyenne
Pre-filled with Cheyenne medians. Adjust to match a specific property.
Cash-on-Cash Return — Cheyenne
Factor in financing to see your actual return on invested capital in Cheyenne.
Is Cheyenne a Good Place to Invest in Rental Property?
Cheyenne, WY has a population of 65,132 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $380,000 paired with median rents of $1,500/mo produces an estimated cap rate of 3.08%.
Property taxes at 0.61% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 6.5x, homes cost about 6.5 times the local median income of $58,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.4% 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, Cheyenne 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.