Cookeville, TN Cap Rate: 4.70% — Rental Property Analysis
Cookeville is a mid-range market in the South with a small but investable metro of 50,000. At a 4.70% estimated cap rate, this is a moderate market where rents of $1,550/mo lag behind home prices. With a median home price of $285,000 and steady population growth supports long-term rental demand, Cookeville offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $285,000 median price and $1,550/mo median rent
Est. Cap Rate
4.70%
1% Rule
0.54%
Fails
GRM
15.3x
Price / Income
5.3x
Market Data
Median Home Price$285,000
Median Monthly Rent$1,550
Property Tax Rate0.65%
Population50,000
Population Growth1.6% / yr
Median Household Income$53,744
Vacancy Rate5.7%
Annual Appreciation3.1%
2026 Market Update: Cookeville
Cookeville's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $285,000, the $1,550/mo rent produces only $1,117/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 ($57K at 7%) would result in approximately $-399/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.
With 1.6% annual population growth paired with 3.1% home appreciation, Cookeville offers a rare combination of current cash flow and future equity upside. The 15.3x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Cap Rate Calculator — Cookeville
Pre-filled with Cookeville medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.65% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.93%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,204
net operating income
Gross Rent Multiplier
15.3x
High (>15)
1% Rule
0.54%
✗ Fails
Monthly Cash Flow
$934
before debt service
Annual Breakdown
Gross Rental Income$18,600
Less Vacancy−$1,060
Effective Income$17,540
Less Operating Expenses−$6,336
Net Operating Income$11,204
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Factor in financing to see your actual return on invested capital in Cookeville.
$
$71,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.44%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$79,800
$71,250 down + $8,550 closing
Monthly Mortgage
$1,393
on $214K loan
Monthly Cash Flow
$-494
after all expenses
Annual Cash Flow
$-5,934
before taxes
Cash Flow Breakdown
Monthly Rent$1,550
Less Expenses−$651
Less Mortgage−$1,393
Monthly Cash Flow$-494
Is Cookeville a Good Place to Invest in Rental Property?
Cookeville, TN has a population of 50,000 and has been growing at 1.6% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $285,000 paired with median rents of $1,550/mo produces an estimated cap rate of 4.70%.
Property taxes at 0.65% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.7% 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 $53,744. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Cookeville presents moderate opportunities. Cap rates near 4.70% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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