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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