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MarketsVirginiaDanville

Cap Rate Analysis: Danville, VA

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

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Strong investment fundamentals
Based on $160,000 median price and $1,150/mo median rent
Est. Cap Rate
6.52%
1% Rule
0.72%
Fails
GRM
11.6x
Price / Income
2.8x

Market Data

Median Home Price$160,000
Median Monthly Rent$1,150
Property Tax Rate0.86%
Population50,000
Population Growth0.7% / yr
Median Household Income$57,250
Vacancy Rate5.2%
Annual Appreciation2.9%

Cap Rate Calculator — Danville

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.86% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
5.36%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$8,582
net operating income
Gross Rent Multiplier
11.6x
Good (<15)
1% Rule
0.72%
✗ Fails
Monthly Cash Flow
$715
before debt service
Annual Breakdown
Gross Rental Income$13,800
Less Vacancy−$718
Effective Income$13,082
Less Operating Expenses−$4,500
Net Operating Income$8,582
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Cash-on-Cash Return — Danville

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

$
$40,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-3.09%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$44,800
$40,000 down + $4,800 closing
Monthly Mortgage
$782
on $120K loan
Monthly Cash Flow
$-115
after all expenses
Annual Cash Flow
$-1,384
before taxes
Cash Flow Breakdown
Monthly Rent$1,150
Less Expenses−$483
Less Mortgage−$782
Monthly Cash Flow$-115

Is Danville a Good Place to Invest in Rental Property?

Danville, VA has a population of 50,000 and has been growing at 0.7% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $160,000 paired with median rents of $1,150/mo produces an estimated cap rate of 6.52%.

Property taxes at 0.86% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 2.8x, homes cost about 2.8 times the local median income of $57,250. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.9% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Danville offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.

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