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Cap Rate Analysis: Gilbert, AZ

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

Challenging for pure cash flow
Based on $480,000 median price and $1,820/mo median rent
Est. Cap Rate
2.95%
1% Rule
0.38%
Fails
GRM
22.0x
Price / Income
5.4x

Market Data

Median Home Price$480,000
Median Monthly Rent$1,820
Property Tax Rate0.6%
Population280,000
Population Growth2% / yr
Median Household Income$88,400
Vacancy Rate4.5%
Annual Appreciation3%

Cap Rate Calculator — Gilbert

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.6% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.53%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,121
net operating income
Gross Rent Multiplier
22.0x
High (>15)
1% Rule
0.38%
✗ Fails
Monthly Cash Flow
$1,010
before debt service
Annual Breakdown
Gross Rental Income$21,840
Less Vacancy−$983
Effective Income$20,857
Less Operating Expenses−$8,736
Net Operating Income$12,121

Cash-on-Cash Return — Gilbert

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

$
$120,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.53%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$134,400
$120,000 down + $14,400 closing
Monthly Mortgage
$2,347
on $360K loan
Monthly Cash Flow
$-1,291
after all expenses
Annual Cash Flow
$-15,491
before taxes
Cash Flow Breakdown
Monthly Rent$1,820
Less Expenses−$764
Less Mortgage−$2,347
Monthly Cash Flow$-1,291

Is Gilbert a Good Place to Invest in Rental Property?

Gilbert, AZ has a population of 280,000 and has been growing at 2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $480,000 paired with median rents of $1,820/mo produces an estimated cap rate of 2.95%.

Property taxes at 0.6% 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 5.4x, homes cost about 5.4 times the local median income of $88,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3% 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, Gilbert 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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