Greenwood, SC Cap Rate 5.63%
Greenwood is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 5.63% estimated cap rate, this is a solid market where rents of $1,050/mo lag behind home prices. With a median home price of $170,000 and steady population growth supports long-term rental demand, Greenwood stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Greenwood
Greenwood's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $170,000, the $1,050/mo rent produces only $798/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 ($34K at 7%) would result in approximately $-106/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, Greenwood offers a rare combination of current cash flow and future equity upside. The 13.5x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Deal Modeling & Scenarios for Greenwood
All figures below are computed from Greenwood'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 $170,000 median price, the annual tax bill is $969 — 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 Greenwood 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 | $170K | $1,050 | 5.6% |
| Year 1 | $176K | $1,082 | 5.6% |
| Year 2 | $182K | $1,114 | 5.6% |
| Year 3 | $188K | $1,147 | 5.6% |
| Year 4 | $194K | $1,182 | 5.5% |
| Year 5 | $201K | $1,217 | 5.5% |
Three Financing Scenarios
Same median-priced Greenwood 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 | $170K | $798 | $9,578 | 5.6% |
| 20% down conventional @ 7% | $39K | $-106 | $-1,275 | -3.3% |
| 25% down DSCR @ 8.5% | $49K | $-182 | $-2,188 | -4.4% |
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) | $128K | $893 | $7,175 | 5.6% | $598 |
| At median | $170K | $1,050 | $8,242 | 4.8% | $687 |
| Above median (~125% price) | $213K | $1,208 | $9,318 | 4.4% | $777 |
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 Greenwood's historical appreciation rate of 3.4%:
On a $34K down payment, that's a 102.2% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Greenwood
Automated checks against the underlying data — surface only the risks that actually apply to Greenwood, not generic boilerplate:
Cap Rate Calculator — Greenwood
Pre-filled with Greenwood medians. Adjust to match a specific property.
Cash-on-Cash Return — Greenwood
Factor in financing to see your actual return on invested capital in Greenwood.
Is Greenwood a Good Place to Invest in Rental Property?
Greenwood, 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 $170,000 paired with median rents of $1,050/mo produces an estimated cap rate of 5.63%.
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 3.4x, homes cost about 3.4 times the local median income of $49,486. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. 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: Greenwood presents moderate opportunities. Cap rates near 5.63% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.