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MarketsNebraskaKearney

Cap Rate Analysis: Kearney, NE

Investment metrics, interactive calculators, and data-driven analysis for Kearney 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 $295,000 median price and $1,570/mo median rent
Est. Cap Rate
3.63%
1% Rule
0.53%
Fails
GRM
15.7x
Price / Income
5.4x

Market Data

Median Home Price$295,000
Median Monthly Rent$1,570
Property Tax Rate1.62%
Population50,000
Population Growth0.7% / yr
Median Household Income$55,067
Vacancy Rate5.2%
Annual Appreciation2.5%

Cap Rate Calculator — Kearney

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.62% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.89%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,512
net operating income
Gross Rent Multiplier
15.7x
High (>15)
1% Rule
0.53%
✗ Fails
Monthly Cash Flow
$709
before debt service
Annual Breakdown
Gross Rental Income$18,840
Less Vacancy−$980
Effective Income$17,860
Less Operating Expenses−$9,348
Net Operating Income$8,512
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Cash-on-Cash Return — Kearney

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

$
$73,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.72%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$82,600
$73,750 down + $8,850 closing
Monthly Mortgage
$1,442
on $221K loan
Monthly Cash Flow
$-531
after all expenses
Annual Cash Flow
$-6,377
before taxes
Cash Flow Breakdown
Monthly Rent$1,570
Less Expenses−$659
Less Mortgage−$1,442
Monthly Cash Flow$-531

Is Kearney a Good Place to Invest in Rental Property?

Kearney, NE has a population of 50,000 and has been growing at 0.7% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $295,000 paired with median rents of $1,570/mo produces an estimated cap rate of 3.63%.

Property taxes at 1.62% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.4x, homes cost about 5.4 times the local median income of $55,067. This moderate ratio indicates a balanced rent-vs-buy market. 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: At current median prices, Kearney 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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