Gillette, WY Cap Rate: 2.82% — Rental Property Analysis
Gillette is a mid-range market in the West with a small but investable metro of 50,000. At a 2.82% estimated cap rate, this is a appreciation-focused market where rents of $1,190/mo lag behind home prices. With a median home price of $320,000 and steady population growth supports long-term rental demand, Gillette is primarily an appreciation play that requires creative strategies to generate positive cash flow.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Challenging for pure cash flow
Based on $320,000 median price and $1,190/mo median rent
Est. Cap Rate
2.82%
1% Rule
0.37%
Fails
GRM
22.4x
Price / Income
5.5x
Market Data
Median Home Price$320,000
Median Monthly Rent$1,190
Property Tax Rate0.61%
Population50,000
Population Growth0.8% / yr
Median Household Income$58,200
Vacancy Rate5.2%
Annual Appreciation2.4%
2026 Market Update: Gillette
Gillette's 0.4% rent-to-price ratio is well below the 1% rule. At median prices of $320,000, the $1,190/mo rent produces only $752/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 ($64K at 7%) would result in approximately $-950/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 22.4x gross rent multiplier and 5.2% vacancy rate position Gillette as a growth-dependent market. With annual appreciation at 2.4%, total returns (cash flow + equity growth) run approximately 5.2% before financing leverage.
Cap Rate Calculator — Gillette
Pre-filled with Gillette medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.61% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.42%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,729
net operating income
Gross Rent Multiplier
22.4x
High (>15)
1% Rule
0.37%
✗ Fails
Monthly Cash Flow
$644
before debt service
Annual Breakdown
Gross Rental Income$14,280
Less Vacancy−$743
Effective Income$13,537
Less Operating Expenses−$5,808
Net Operating Income$7,729
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Factor in financing to see your actual return on invested capital in Gillette.
$
$80,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.71%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$89,600
$80,000 down + $9,600 closing
Monthly Mortgage
$1,565
on $240K loan
Monthly Cash Flow
$-875
after all expenses
Annual Cash Flow
$-10,495
before taxes
Cash Flow Breakdown
Monthly Rent$1,190
Less Expenses−$500
Less Mortgage−$1,565
Monthly Cash Flow$-875
Is Gillette a Good Place to Invest in Rental Property?
Gillette, WY has a population of 50,000 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 $320,000 paired with median rents of $1,190/mo produces an estimated cap rate of 2.82%.
Property taxes at 0.61% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.5x, homes cost about 5.5 times the local median income of $58,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.4% 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, Gillette 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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