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MarketsGeorgiaGainesville

Cap Rate Analysis: Gainesville, GA

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

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

Challenging for pure cash flow
Based on $385,000 median price and $1,670/mo median rent
Est. Cap Rate
3.15%
1% Rule
0.43%
Fails
GRM
19.2x
Price / Income
7.8x

Market Data

Median Home Price$385,000
Median Monthly Rent$1,670
Property Tax Rate0.93%
Population50,000
Population Growth0.9% / yr
Median Household Income$49,350
Vacancy Rate6.2%
Annual Appreciation2.9%

Cap Rate Calculator — Gainesville

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.93% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.62%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,074
net operating income
Gross Rent Multiplier
19.2x
High (>15)
1% Rule
0.43%
✗ Fails
Monthly Cash Flow
$839
before debt service
Annual Breakdown
Gross Rental Income$20,040
Less Vacancy−$1,242
Effective Income$18,798
Less Operating Expenses−$8,724
Net Operating Income$10,074
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Cash-on-Cash Return — Gainesville

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

$
$96,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.17%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$107,800
$96,250 down + $11,550 closing
Monthly Mortgage
$1,882
on $289K loan
Monthly Cash Flow
$-913
after all expenses
Annual Cash Flow
$-10,961
before taxes
Cash Flow Breakdown
Monthly Rent$1,670
Less Expenses−$701
Less Mortgage−$1,882
Monthly Cash Flow$-913

Is Gainesville a Good Place to Invest in Rental Property?

Gainesville, GA has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $385,000 paired with median rents of $1,670/mo produces an estimated cap rate of 3.15%.

Property taxes at 0.93% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6.2% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 7.8x, homes cost about 7.8 times the local median income of $49,350. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. 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: At current median prices, Gainesville 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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