Coos Bay, OR Cap Rate 4.25%
Coos Bay is a mid-range market in the West with a small but investable metro of 50,000. At a 4.25% estimated cap rate, this is a moderate market where rents of $1,780/mo lag behind home prices. With a median home price of $340,000 and steady population growth supports long-term rental demand, Coos Bay 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
Market Data
2026 Market Update: Coos Bay
Coos Bay's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $340,000, the $1,780/mo rent produces only $1,203/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 ($68K at 7%) would result in approximately $-606/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 15.9x gross rent multiplier and 4.7% vacancy rate position Coos Bay as a balanced market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 6.7% before financing leverage.
Deal Modeling & Scenarios for Coos Bay
All figures below are computed from Coos Bay's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.94% effective rate on the $340,000 median price, the annual tax bill is $3,196 — that's near national average (-11% 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 Coos Bay continues appreciating at 2.5%/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 | $340K | $1,780 | 4.2% |
| Year 1 | $349K | $1,833 | 4.3% |
| Year 2 | $357K | $1,888 | 4.3% |
| Year 3 | $366K | $1,945 | 4.3% |
| Year 4 | $375K | $2,003 | 4.3% |
| Year 5 | $385K | $2,064 | 4.4% |
Three Financing Scenarios
Same median-priced Coos Bay 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 | $340K | $1,203 | $14,440 | 4.2% |
| 20% down conventional @ 7% | $78K | $-605 | $-7,266 | -9.3% |
| 25% down DSCR @ 8.5% | $99K | $-758 | $-9,091 | -9.2% |
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) | $255K | $1,513 | $10,981 | 4.3% | $915 |
| At median | $340K | $1,780 | $12,382 | 3.6% | $1,032 |
| Above median (~125% price) | $425K | $2,047 | $13,784 | 3.2% | $1,149 |
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 Coos Bay's historical appreciation rate of 2.5%:
On a $68K down payment, that's a 42.3% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Coos Bay
Automated checks against the underlying data — surface only the risks that actually apply to Coos Bay, not generic boilerplate:
Cap Rate Calculator — Coos Bay
Pre-filled with Coos Bay medians. Adjust to match a specific property.
Cash-on-Cash Return — Coos Bay
Factor in financing to see your actual return on invested capital in Coos Bay.
Is Coos Bay a Good Place to Invest in Rental Property?
Coos Bay, OR has a population of 50,000 and has been growing at 1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $340,000 paired with median rents of $1,780/mo produces an estimated cap rate of 4.25%.
Property taxes at 0.94% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.7% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 5.9x, homes cost about 5.9 times the local median income of $57,433. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Coos Bay presents moderate opportunities. Cap rates near 4.25% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.