Georgetown, SC Cap Rate 4.57%
Georgetown is a higher-priced market in the South with a small but investable metro of 50,000. At a 4.57% estimated cap rate, this is a moderate market where rents of $1,990/mo lag behind home prices. With a median home price of $380,000 and steady population growth supports long-term rental demand, Georgetown 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
Market Data
2026 Market Update: Georgetown
Georgetown's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $380,000, the $1,990/mo rent produces only $1,447/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 ($76K at 7%) would result in approximately $-575/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.
With 1.9% annual population growth paired with 3.4% home appreciation, Georgetown offers a rare combination of current cash flow and future equity upside. The 15.9x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Deal Modeling & Scenarios for Georgetown
All figures below are computed from Georgetown's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.57% effective rate on the $380,000 median price, the annual tax bill is $2,166 — that's very low (bottom 15% of US markets) (-46% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Georgetown continues appreciating at 3.4%/yr while rents grow at a conservative 3%/yr, cap rate compresses as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $380K | $1,990 | 4.6% |
| Year 1 | $393K | $2,050 | 4.6% |
| Year 2 | $406K | $2,111 | 4.5% |
| Year 3 | $420K | $2,175 | 4.5% |
| Year 4 | $434K | $2,240 | 4.5% |
| Year 5 | $449K | $2,307 | 4.5% |
Three Financing Scenarios
Same median-priced Georgetown property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $380K | $1,447 | $17,361 | 4.6% |
| 20% down conventional @ 7% | $87K | $-575 | $-6,899 | -7.9% |
| 25% down DSCR @ 8.5% | $110K | $-745 | $-8,939 | -8.1% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $285K | $1,692 | $13,174 | 4.6% | $1,098 |
| At median | $380K | $1,990 | $15,060 | 4.0% | $1,255 |
| Above median (~125% price) | $475K | $2,289 | $16,955 | 3.6% | $1,413 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Georgetown's historical appreciation rate of 3.4%:
On a $76K down payment, that's a 75.6% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Georgetown
Automated checks against the underlying data — surface only the risks that actually apply to Georgetown, not generic boilerplate:
Cap Rate Calculator — Georgetown
Pre-filled with Georgetown medians. Adjust to match a specific property.
Cash-on-Cash Return — Georgetown
Factor in financing to see your actual return on invested capital in Georgetown.
Is Georgetown a Good Place to Invest in Rental Property?
Georgetown, SC has a population of 50,000 and has been growing at 1.9% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $380,000 paired with median rents of $1,990/mo produces an estimated cap rate of 4.57%.
Property taxes at 0.57% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 7.7x, homes cost about 7.7 times the local median income of $49,486. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Georgetown presents moderate opportunities. Cap rates near 4.57% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.