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
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.
All figures below are computed from Jacksonville's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
At 0.78% effective rate on the $285,000 median price, the annual tax bill is $2,223 — that's below national average (-26% 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.
If Jacksonville continues appreciating at 2.5%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $285K | $1,480 | 4.2% |
| Year 1 | $292K | $1,524 | 4.3% |
| Year 2 | $299K | $1,570 | 4.3% |
| Year 3 | $307K | $1,617 | 4.3% |
| Year 4 | $315K | $1,666 | 4.3% |
| Year 5 | $322K | $1,716 | 4.4% |
Same median-priced Jacksonville 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 | $285K | $1,009 | $12,103 | 4.2% |
| 20% down conventional @ 7% | $66K | $-508 | $-6,092 | -9.3% |
| 25% down DSCR @ 8.5% | $83K | $-635 | $-7,622 | -9.2% |
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) | $214K | $1,258 | $9,177 | 4.3% | $765 |
| At median | $285K | $1,480 | $10,401 | 3.6% | $867 |
| Above median (~125% price) | $356K | $1,702 | $11,625 | 3.3% | $969 |
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 Jacksonville's historical appreciation rate of 2.5%:
On a $57K down payment, that's a 42.3% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Automated checks against the underlying data — surface only the risks that actually apply to Jacksonville, not generic boilerplate:
Pre-filled with Jacksonville medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Jacksonville.
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.