Fayetteville, NC Cap Rate: 4.92% — Rental Property Analysis
Fayetteville is a mid-range market in the South with a mid-sized city of 211,657. At a 4.92% estimated cap rate, this is a moderate market where rents of $1,480/mo lag behind home prices. With a median home price of $255,000 and steady population growth supports long-term rental demand, Fayetteville 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
◈
Moderate — source deals carefully
Based on $255,000 median price and $1,480/mo median rent
Est. Cap Rate
4.92%
1% Rule
0.58%
Fails
GRM
14.4x
Price / Income
5.8x
Market Data
Median Home Price$255,000
Median Monthly Rent$1,480
Property Tax Rate0.79%
Population211,657
Population Growth0.8% / yr
Median Household Income$44,200
Vacancy Rate6.5%
Annual Appreciation2.5%
2026 Market Update: Fayetteville
Fayetteville's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $255,000, the $1,480/mo rent produces only $1,046/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 ($51K at 7%) would result in approximately $-311/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 14.4x gross rent multiplier and 6.5% vacancy rate position Fayetteville as a balanced market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 7.4% before financing leverage.
Cap Rate Calculator — Fayetteville
Pre-filled with Fayetteville medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.79% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.07%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,378
net operating income
Gross Rent Multiplier
14.4x
Good (<15)
1% Rule
0.58%
✗ Fails
Monthly Cash Flow
$865
before debt service
Annual Breakdown
Gross Rental Income$17,760
Less Vacancy−$1,154
Effective Income$16,606
Less Operating Expenses−$6,228
Net Operating Income$10,378
Sponsored
Analyze Deals Faster with DealCheck
Import any property, get instant investment analysis — cap rates, cash flow, rehab estimates, and offer calculations. Used by 350,000+ investors.
Factor in financing to see your actual return on invested capital in Fayetteville.
$
$63,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.53%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$71,400
$63,750 down + $7,650 closing
Monthly Mortgage
$1,247
on $191K loan
Monthly Cash Flow
$-389
after all expenses
Annual Cash Flow
$-4,666
before taxes
Cash Flow Breakdown
Monthly Rent$1,480
Less Expenses−$622
Less Mortgage−$1,247
Monthly Cash Flow$-389
Is Fayetteville a Good Place to Invest in Rental Property?
Fayetteville, NC has a population of 211,657 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $255,000 paired with median rents of $1,480/mo produces an estimated cap rate of 4.92%.
Property taxes at 0.79% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.8x, homes cost about 5.8 times the local median income of $44,200. 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: Fayetteville presents moderate opportunities. Cap rates near 4.92% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.