Elizabeth City, NC Cap Rate: 4.93% — Rental Property Analysis
Elizabeth City is a mid-range market in the South with a small but investable metro of 50,000. At a 4.93% estimated cap rate, this is a moderate market where rents of $1,490/mo lag behind home prices. With a median home price of $260,000 and steady population growth supports long-term rental demand, Elizabeth City 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 $260,000 median price and $1,490/mo median rent
Est. Cap Rate
4.93%
1% Rule
0.57%
Fails
GRM
14.5x
Price / Income
4.5x
Market Data
Median Home Price$260,000
Median Monthly Rent$1,490
Property Tax Rate0.78%
Population50,000
Population Growth1.5% / yr
Median Household Income$58,267
Vacancy Rate5.3%
Annual Appreciation3.2%
2026 Market Update: Elizabeth City
Elizabeth City's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $260,000, the $1,490/mo rent produces only $1,069/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 ($52K at 7%) would result in approximately $-314/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 14.5x gross rent multiplier and 5.3% vacancy rate position Elizabeth City as a balanced market. With annual appreciation at 3.2%, total returns (cash flow + equity growth) run approximately 8.1% before financing leverage.
Cap Rate Calculator — Elizabeth City
Pre-filled with Elizabeth City medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.78% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.09%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,644
net operating income
Gross Rent Multiplier
14.5x
Good (<15)
1% Rule
0.57%
✗ Fails
Monthly Cash Flow
$887
before debt service
Annual Breakdown
Gross Rental Income$17,880
Less Vacancy−$948
Effective Income$16,932
Less Operating Expenses−$6,288
Net Operating Income$10,644
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Factor in financing to see your actual return on invested capital in Elizabeth City.
$
$65,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.71%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$72,800
$65,000 down + $7,800 closing
Monthly Mortgage
$1,271
on $195K loan
Monthly Cash Flow
$-407
after all expenses
Annual Cash Flow
$-4,887
before taxes
Cash Flow Breakdown
Monthly Rent$1,490
Less Expenses−$626
Less Mortgage−$1,271
Monthly Cash Flow$-407
Is Elizabeth City a Good Place to Invest in Rental Property?
Elizabeth City, NC has a population of 50,000 and has been growing at 1.5% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $260,000 paired with median rents of $1,490/mo produces an estimated cap rate of 4.93%.
Property taxes at 0.78% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.3% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.5x, homes cost about 4.5 times the local median income of $58,267. 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 3.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Elizabeth City presents moderate opportunities. Cap rates near 4.93% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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