%
CapRateCity
Free cap rate calculators for every US market
← All markets

Cap Rate Analysis: Kansas City, MO

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

Challenging for pure cash flow
Based on $245,000 median price and $1,320/mo median rent
Est. Cap Rate
3.96%
1% Rule
0.54%
Fails
GRM
15.5x
Price / Income
4.2x

Market Data

Median Home Price$245,000
Median Monthly Rent$1,320
Property Tax Rate1.32%
Population508,090
Population Growth0.8% / yr
Median Household Income$57,900
Vacancy Rate5.9%
Annual Appreciation2.9%

Cap Rate Calculator — Kansas City

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.32% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.19%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,825
net operating income
Gross Rent Multiplier
15.5x
High (>15)
1% Rule
0.54%
✗ Fails
Monthly Cash Flow
$652
before debt service
Annual Breakdown
Gross Rental Income$15,840
Less Vacancy−$935
Effective Income$14,905
Less Operating Expenses−$7,080
Net Operating Income$7,825

Cash-on-Cash Return — Kansas City

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

$
$61,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.56%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$68,600
$61,250 down + $7,350 closing
Monthly Mortgage
$1,198
on $184K loan
Monthly Cash Flow
$-432
after all expenses
Annual Cash Flow
$-5,183
before taxes
Cash Flow Breakdown
Monthly Rent$1,320
Less Expenses−$554
Less Mortgage−$1,198
Monthly Cash Flow$-432

Is Kansas City a Good Place to Invest in Rental Property?

Kansas City, MO has a population of 508,090 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $245,000 paired with median rents of $1,320/mo produces an estimated cap rate of 3.96%.

Property taxes at 1.32% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.9% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.2x, homes cost about 4.2 times the local median income of $57,900. 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 2.9% 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, Kansas City 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.

Run a BRRRR analysis for Kansas City
Model a buy-rehab-refinance deal with Kansas City data pre-loaded.
Open BRRRR Calculator →