Logan, UT Cap Rate 1.93%
Logan is the urban anchor of Cache Valley in northern Utah — a college-town and outdoor-lifestyle metro 80 miles north of Salt Lake City. The 1.93% cap rate at a $460,000 median price keeps the 0.29% rent-to-price ratio close to functional. Population growth at 2%/yr is steady, helped by sustained Utah State University growth and continued Mountain West in-migration.
Employment is anchored by Utah State University (USU — the state's land-grant flagship with ~28K students plus the broader research and athletic enterprise — USU is one of the larger US Western land-grant universities, with strong engineering, agriculture, and space-science programs), Logan Regional Hospital (Intermountain Health — the dominant regional medical system), the broader Cache County government, Conservice (utility management services, headquartered here), the broader manufacturing-and-agriculture base, and a meaningful tourism economy tied to the broader Cache Valley outdoor recreation (Beaver Mountain ski area, the Bear River Mountains, and the broader Wasatch-Cache National Forest). Submarkets stratify cleanly: the historic Old Main / USU-adjacent area is walkable urban with strong appreciation; the broader North Logan and Smithfield areas are premium suburban-school zones drawing professional family rentals; the campus-adjacent zones are student-heavy with operational complexity tied to August-to-July leasing; the broader Cache County extends with newer construction.
Utah property tax at 0.57% is among the lowest in the country. Utah state income tax is a flat ~4.65%. Insurance is reasonable. The structural advantages: USU enrollment is genuinely durable; USU's Space Dynamics Laboratory provides meaningful federal-research overlay (the Lab does extensive DoD and NASA-funded research); cost basis is materially below Salt Lake City or Provo; Utah's broader tax structure is among the most favorable; sustained in-migration to the Wasatch Front extends into Cache Valley. The structural risks: student-market concentration is the central operational reality — campus-adjacent inventory has summer vacancy if leases aren't structured for August-to-July cycles; cold-climate operational complexity. For investors who want Utah exposure outside the more expensive Wasatch Front metros with a defensible college-town anchor, Logan is the most underrated northern Utah option.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Logan
Logan's 0.3% rent-to-price ratio is well below the 1% rule. At median prices of $460,000, the $1,320/mo rent produces only $738/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 ($92K at 7%) would result in approximately $-1,709/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 29.0x gross rent multiplier and 4.3% vacancy rate position Logan as a growth-dependent market. With annual appreciation at 2.8%, total returns (cash flow + equity growth) run approximately 4.7% before financing leverage.
Deal Modeling & Scenarios for Logan
All figures below are computed from Logan's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.57% effective rate on the $460,000 median price, the annual tax bill is $2,622 — that's very low (bottom 15% of US markets) (-46% 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.
5-Year Cap Rate Trajectory
If Logan continues appreciating at 2.8%/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 | $460K | $1,320 | 1.9% |
| Year 1 | $473K | $1,360 | 1.9% |
| Year 2 | $486K | $1,400 | 1.9% |
| Year 3 | $500K | $1,442 | 1.9% |
| Year 4 | $514K | $1,486 | 1.9% |
| Year 5 | $528K | $1,530 | 1.9% |
Three Financing Scenarios
Same median-priced Logan 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 | $460K | $738 | $8,857 | 1.9% |
| 20% down conventional @ 7% | $106K | $-1,709 | $-20,510 | -19.4% |
| 25% down DSCR @ 8.5% | $133K | $-1,915 | $-22,980 | -17.2% |
Three Price Tiers: Below, At, and Above the Median
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) | $345K | $1,122 | $7,384 | 2.1% | $615 |
| At median | $460K | $1,320 | $8,162 | 1.8% | $680 |
| Above median (~125% price) | $575K | $1,518 | $8,941 | 1.6% | $745 |
Total Return Over a 5-Year Hold
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 Logan's historical appreciation rate of 2.8%:
On a $92K down payment, that's a -7.4% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Logan
Automated checks against the underlying data — surface only the risks that actually apply to Logan, not generic boilerplate:
Cap Rate Calculator — Logan
Pre-filled with Logan medians. Adjust to match a specific property.
Cash-on-Cash Return — Logan
Factor in financing to see your actual return on invested capital in Logan.
Is Logan a Good Place to Invest in Rental Property?
Logan, UT has a population of 50,000 and has been growing at 2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $460,000 paired with median rents of $1,320/mo produces an estimated cap rate of 1.93%.
Property taxes at 0.57% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.3% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 8.3x, homes cost about 8.3 times the local median income of $55,575. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.8% 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, Logan 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.