Factor in financing to see your actual return on invested capital in Harrisonburg.
$
$85,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.53%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$95,200
$85,000 down + $10,200 closing
Monthly Mortgage
$1,662
on $255K loan
Monthly Cash Flow
$-676
after all expenses
Annual Cash Flow
$-8,117
before taxes
Cash Flow Breakdown
Monthly Rent$1,700
Less Expenses−$714
Less Mortgage−$1,662
Monthly Cash Flow$-676
Is Harrisonburg a Good Place to Invest in Rental Property?
Harrisonburg, VA has a population of 50,000 and has been growing at 0.7% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $340,000 paired with median rents of $1,700/mo produces an estimated cap rate of 4.03%.
Property taxes at 0.86% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.9x, homes cost about 5.9 times the local median income of $57,250. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.9% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Harrisonburg presents moderate opportunities. Cap rates near 4.03% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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