Jacksonville, NC Cap Rate: 4.25% — Rental Property Analysis
Jacksonville is a mid-range market in the South with a smaller market with 74,500 residents. At a 4.25% estimated cap rate, this is a moderate market where rents of $1,480/mo lag behind home prices. With a median home price of $285,000 and steady population growth supports long-term rental demand, Jacksonville 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
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Moderate — source deals carefully
Based on $285,000 median price and $1,480/mo median rent
Est. Cap Rate
4.25%
1% Rule
0.52%
Fails
GRM
16.0x
Price / Income
6.4x
Market Data
Median Home Price$285,000
Median Monthly Rent$1,480
Property Tax Rate0.78%
Population74,500
Population Growth1.2% / yr
Median Household Income$44,600
Vacancy Rate6.5%
Annual Appreciation2.5%
2026 Market Update: Jacksonville
Jacksonville's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $285,000, the $1,480/mo rent produces only $1,009/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 ($57K at 7%) would result in approximately $-507/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 16.0x gross rent multiplier and 6.5% vacancy rate position Jacksonville as a balanced market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 6.7% before financing leverage.
Cap Rate Calculator — Jacksonville
Pre-filled with Jacksonville 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
3.53%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,054
net operating income
Gross Rent Multiplier
16.0x
High (>15)
1% Rule
0.52%
✗ Fails
Monthly Cash Flow
$838
before debt service
Annual Breakdown
Gross Rental Income$17,760
Less Vacancy−$1,154
Effective Income$16,606
Less Operating Expenses−$6,552
Net Operating Income$10,054
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Factor in financing to see your actual return on invested capital in Jacksonville.
$
$71,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.05%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$79,800
$71,250 down + $8,550 closing
Monthly Mortgage
$1,393
on $214K loan
Monthly Cash Flow
$-535
after all expenses
Annual Cash Flow
$-6,426
before taxes
Cash Flow Breakdown
Monthly Rent$1,480
Less Expenses−$622
Less Mortgage−$1,393
Monthly Cash Flow$-535
Is Jacksonville a Good Place to Invest in Rental Property?
Jacksonville, NC has a population of 74,500 and has been growing at 1.2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $285,000 paired with median rents of $1,480/mo produces an estimated cap rate of 4.25%.
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 6.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 6.4x, homes cost about 6.4 times the local median income of $44,600. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Jacksonville presents moderate opportunities. Cap rates near 4.25% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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