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Greenville, SC Cap Rate: 4.43% — Rental Property Analysis

Greenville is the economic anchor of Upstate South Carolina, anchored by a manufacturing base unlike any other small Southern metro — BMW's Spartanburg plant (the largest BMW factory in the world by volume), Michelin's North American headquarters, and a deep automotive supplier ecosystem. The 4.43% cap rate at a $305,000 median price reflects sustained in-migration that ran prices ahead of rents. The 0.51% rent-to-price ratio sits below the 1% rule. Population growth at 1.6%/yr is among the strongest in the Southeast.

Employment is anchored by BMW's Spartanburg plant just east (X3, X5, X7, XM production — the source of the supplier-cluster employment running through Greenville), Michelin (North American HQ here — manufacturing, R&D, and corporate functions), General Electric's power-and-gas turbine operations, Lockheed Martin's Greenville site, Prisma Health and Bon Secours St. Francis health systems, Furman University and the University of South Carolina Upstate, Clemson University nearby, and the broader Upstate corridor extending through Spartanburg and Anderson. Submarkets stratify cleanly: downtown Greenville and the West End / Augusta Road / Pelham areas are walkable urban-historic with strong appreciation; Five Forks, Simpsonville, and Greer are premium suburban-school zones; Mauldin and Easley extend the metro with cheaper basis; the rural-edge submarkets toward Anderson offer deeper-value workforce inventory.

South Carolina property tax at 0.55% is moderate at the metro level, but the 4% (owner-occupied) vs 6% (non-owner-occupied) assessment ratio gap is meaningful — non-occupant investors pay materially more than the headline rate suggests. SC state income tax is graduated with a top rate near 6.5%, with a phase-down underway through 2027. Insurance is reasonable (Upstate sits well inland, no Gulf or coastal exposure). The structural advantages: BMW + Michelin + supplier cluster is genuinely durable manufacturing employment (BMW has invested billions in EV production capacity here); population growth has been continuous for 20+ years; the cost basis is materially below Charlotte or Atlanta. The structural risks: any major BMW production-shift decision would ripple to the entire metro economy, and post-2020 pricing has compressed cap rates well below where rents support cash flow at the median. For investors who want defensible manufacturing-anchored growth in the Southeast, Greenville is the most underrated Upstate option.

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

Moderate — source deals carefully
Based on $305,000 median price and $1,550/mo median rent
Est. Cap Rate
4.43%
1% Rule
0.51%
Fails
GRM
16.4x
Price / Income
6.1x

Market Data

Median Home Price$305,000
Median Monthly Rent$1,550
Property Tax Rate0.55%
Population72,610
Population Growth1.6% / yr
Median Household Income$50,200
Vacancy Rate5.2%
Annual Appreciation3.5%

2026 Market Update: Greenville

Greenville's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $305,000, the $1,550/mo rent produces only $1,126/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 ($61K at 7%) would result in approximately $-497/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 1.6% annual population growth paired with 3.5% home appreciation, Greenville offers a rare combination of current cash flow and future equity upside. The 16.4x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.

Deal Modeling & Scenarios for Greenville

All figures below are computed from Greenville's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.

Property Tax Bill in Real Dollars

Annual$1,678
Monthly$140
% of Gross Rent9.0%

At 0.55% effective rate on the $305,000 median price, the annual tax bill is $1,678 — that's very low (bottom 15% of US markets) (-48% 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 Greenville continues appreciating at 3.5%/yr while rents grow at a conservative 3%/yr, cap rate compresses as price growth outpaces rent. Year-by-year projection at the median:

YearEst. PriceEst. Rent/MoCap Rate
Today$305K$1,5504.4%
Year 1$316K$1,5974.4%
Year 2$327K$1,6444.4%
Year 3$338K$1,6944.4%
Year 4$350K$1,7454.3%
Year 5$362K$1,7974.3%

Three Financing Scenarios

Same median-priced Greenville 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.

ScenarioCash InvestedMonthly Cash FlowAnnual CFCash-on-Cash
All cash$305K$1,126$13,5154.4%
20% down conventional @ 7%$70K$-496$-5,956-8.5%
25% down DSCR @ 8.5%$88K$-633$-7,594-8.6%

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:

TierPriceRent/MoNOI/YrCap RateMonthly CF
Below median (~75% price)$229K$1,318$10,2904.5%$857
At median$305K$1,550$11,7593.9%$980
Above median (~125% price)$381K$1,782$13,2293.5%$1,102

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 Greenville's historical appreciation rate of 3.5%:

Cash Flow (5yr)$-29,779
Appreciation$57K
Principal Paydown$18K
Total Return$46K

On a $61K down payment, that's a 75.0% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.

Risk Flags Specific to Greenville

Automated checks against the underlying data — surface only the risks that actually apply to Greenville, not generic boilerplate:

Watch closelyRent-to-price ratio of 0.51% is well below the 1% rule. Achieving positive cash flow at median prices requires below-market purchases, larger down payments, or value-add strategies.
Worth notingPrice-to-income ratio of 6.1x suggests homeownership is stretched locally — supports rental demand, but limits the buyer pool for any future exit.

Cap Rate Calculator — Greenville

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.55% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.73%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,381
net operating income
Gross Rent Multiplier
16.4x
High (>15)
1% Rule
0.51%
✗ Fails
Monthly Cash Flow
$948
before debt service
Annual Breakdown
Gross Rental Income$18,600
Less Vacancy−$967
Effective Income$17,633
Less Operating Expenses−$6,252
Net Operating Income$11,381
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Cash-on-Cash Return — Greenville

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

$
$76,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.32%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$85,400
$76,250 down + $9,150 closing
Monthly Mortgage
$1,491
on $229K loan
Monthly Cash Flow
$-592
after all expenses
Annual Cash Flow
$-7,107
before taxes
Cash Flow Breakdown
Monthly Rent$1,550
Less Expenses−$651
Less Mortgage−$1,491
Monthly Cash Flow$-592

Is Greenville a Good Place to Invest in Rental Property?

Greenville, SC has a population of 72,610 and has been growing at 1.6% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $305,000 paired with median rents of $1,550/mo produces an estimated cap rate of 4.43%.

Property taxes at 0.55% 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 6.1x, homes cost about 6.1 times the local median income of $50,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Greenville presents moderate opportunities. Cap rates near 4.43% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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