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Cap Rate Analysis: Fredericksburg, VA

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

Challenging for pure cash flow
Based on $345,000 median price and $1,580/mo median rent
Est. Cap Rate
3.69%
1% Rule
0.46%
Fails
GRM
18.2x
Price / Income
5.9x

Market Data

Median Home Price$345,000
Median Monthly Rent$1,580
Property Tax Rate0.76%
Population32,000
Population Growth1.5% / yr
Median Household Income$58,200
Vacancy Rate4.5%
Annual Appreciation3.2%

Cap Rate Calculator — Fredericksburg

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.76% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.10%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,691
net operating income
Gross Rent Multiplier
18.2x
High (>15)
1% Rule
0.46%
✗ Fails
Monthly Cash Flow
$891
before debt service
Annual Breakdown
Gross Rental Income$18,960
Less Vacancy−$853
Effective Income$18,107
Less Operating Expenses−$7,416
Net Operating Income$10,691

Cash-on-Cash Return — Fredericksburg

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

$
$86,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.58%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$96,600
$86,250 down + $10,350 closing
Monthly Mortgage
$1,687
on $259K loan
Monthly Cash Flow
$-771
after all expenses
Annual Cash Flow
$-9,250
before taxes
Cash Flow Breakdown
Monthly Rent$1,580
Less Expenses−$664
Less Mortgage−$1,687
Monthly Cash Flow$-771

Is Fredericksburg a Good Place to Invest in Rental Property?

Fredericksburg, VA has a population of 32,000 and has been growing at 1.5% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $345,000 paired with median rents of $1,580/mo produces an estimated cap rate of 3.69%.

Property taxes at 0.76% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.5% 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 $58,200. This moderate ratio indicates a balanced rent-vs-buy market. 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: At current median prices, Fredericksburg is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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