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Henderson, NC Cap Rate: 5.30% — Rental Property Analysis

Henderson is a budget-friendly market in the South with a small but investable metro of 50,000. At a 5.30% estimated cap rate, this is a moderate market where rents of $1,090/mo lag behind home prices. With a median home price of $180,000 and steady population growth supports long-term rental demand, Henderson offers opportunities for investors who source deals carefully.

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

Moderate — source deals carefully
Based on $180,000 median price and $1,090/mo median rent
Est. Cap Rate
5.30%
1% Rule
0.61%
Fails
GRM
13.8x
Price / Income
3.1x

Market Data

Median Home Price$180,000
Median Monthly Rent$1,090
Property Tax Rate0.78%
Population50,000
Population Growth1.5% / yr
Median Household Income$58,267
Vacancy Rate5.3%
Annual Appreciation3.2%

2026 Market Update: Henderson

Henderson's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $180,000, the $1,090/mo rent produces only $795/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 ($36K at 7%) would result in approximately $-163/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 13.8x gross rent multiplier and 5.3% vacancy rate position Henderson as a value-oriented market. With annual appreciation at 3.2%, total returns (cash flow + equity growth) run approximately 8.5% before financing leverage.

Cap Rate Calculator — Henderson

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.78% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.39%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,911
net operating income
Gross Rent Multiplier
13.8x
Good (<15)
1% Rule
0.61%
✗ Fails
Monthly Cash Flow
$659
before debt service
Annual Breakdown
Gross Rental Income$13,080
Less Vacancy−$693
Effective Income$12,387
Less Operating Expenses−$4,476
Net Operating Income$7,911
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Cash-on-Cash Return — Henderson

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

$
$45,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.91%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$50,400
$45,000 down + $5,400 closing
Monthly Mortgage
$880
on $135K loan
Monthly Cash Flow
$-248
after all expenses
Annual Cash Flow
$-2,977
before taxes
Cash Flow Breakdown
Monthly Rent$1,090
Less Expenses−$458
Less Mortgage−$880
Monthly Cash Flow$-248

Is Henderson a Good Place to Invest in Rental Property?

Henderson, NC has a population of 50,000 and has been growing at 1.5% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $180,000 paired with median rents of $1,090/mo produces an estimated cap rate of 5.30%.

Property taxes at 0.78% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.3% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.1x, homes cost about 3.1 times the local median income of $58,267. 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 3.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Henderson presents moderate opportunities. Cap rates near 5.30% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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