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Cap Rate Analysis: Holland, MI

Investment metrics, interactive calculators, and data-driven analysis for Holland rental properties.

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

Challenging for pure cash flow
Based on $335,000 median price and $1,500/mo median rent
Est. Cap Rate
2.78%
1% Rule
0.45%
Fails
GRM
18.6x
Price / Income
7.1x

Market Data

Median Home Price$335,000
Median Monthly Rent$1,500
Property Tax Rate1.46%
Population50,000
Population Growth0.3% / yr
Median Household Income$46,975
Vacancy Rate6.2%
Annual Appreciation2.4%

Cap Rate Calculator — Holland

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.46% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.21%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,404
net operating income
Gross Rent Multiplier
18.6x
High (>15)
1% Rule
0.45%
✗ Fails
Monthly Cash Flow
$617
before debt service
Annual Breakdown
Gross Rental Income$18,000
Less Vacancy−$1,116
Effective Income$16,884
Less Operating Expenses−$9,480
Net Operating Income$7,404
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Cash-on-Cash Return — Holland

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

$
$83,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.82%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$93,800
$83,750 down + $10,050 closing
Monthly Mortgage
$1,638
on $251K loan
Monthly Cash Flow
$-768
after all expenses
Annual Cash Flow
$-9,216
before taxes
Cash Flow Breakdown
Monthly Rent$1,500
Less Expenses−$630
Less Mortgage−$1,638
Monthly Cash Flow$-768

Is Holland a Good Place to Invest in Rental Property?

Holland, MI has a population of 50,000 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $335,000 paired with median rents of $1,500/mo produces an estimated cap rate of 2.78%.

Property taxes at 1.46% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6.2% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 7.1x, homes cost about 7.1 times the local median income of $46,975. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. 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, Holland 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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