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MarketsMontanaKalispell

Cap Rate Analysis: Kalispell, MT

Investment metrics, interactive calculators, and data-driven analysis for Kalispell 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 $625,000 median price and $2,170/mo median rent
Est. Cap Rate
2.42%
1% Rule
0.35%
Fails
GRM
24.0x
Price / Income
11.7x

Market Data

Median Home Price$625,000
Median Monthly Rent$2,170
Property Tax Rate0.76%
Population50,000
Population Growth1.5% / yr
Median Household Income$53,500
Vacancy Rate4.4%
Annual Appreciation2.6%

Cap Rate Calculator — Kalispell

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.76% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.07%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,954
net operating income
Gross Rent Multiplier
24.0x
High (>15)
1% Rule
0.35%
✗ Fails
Monthly Cash Flow
$1,080
before debt service
Annual Breakdown
Gross Rental Income$26,040
Less Vacancy−$1,146
Effective Income$24,894
Less Operating Expenses−$11,940
Net Operating Income$12,954
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Cash-on-Cash Return — Kalispell

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

$
$156,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-12.32%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$175,000
$156,250 down + $18,750 closing
Monthly Mortgage
$3,056
on $469K loan
Monthly Cash Flow
$-1,797
after all expenses
Annual Cash Flow
$-21,563
before taxes
Cash Flow Breakdown
Monthly Rent$2,170
Less Expenses−$911
Less Mortgage−$3,056
Monthly Cash Flow$-1,797

Is Kalispell a Good Place to Invest in Rental Property?

Kalispell, MT 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 $625,000 paired with median rents of $2,170/mo produces an estimated cap rate of 2.42%.

Property taxes at 0.76% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.4% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 11.7x, homes cost about 11.7 times the local median income of $53,500. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.6% 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, Kalispell 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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