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Cap Rate Analysis: Lumberton, NC

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

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Strong investment fundamentals
Based on $130,000 median price and $1,050/mo median rent
Est. Cap Rate
7.60%
1% Rule
0.81%
Fails
GRM
10.3x
Price / Income
2.2x

Market Data

Median Home Price$130,000
Median Monthly Rent$1,050
Property Tax Rate0.78%
Population50,000
Population Growth1.5% / yr
Median Household Income$58,267
Vacancy Rate5.3%
Annual Appreciation3.2%

Cap Rate Calculator — Lumberton

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.78% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
6.25%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$8,128
net operating income
Gross Rent Multiplier
10.3x
Good (<15)
1% Rule
0.81%
✗ Fails
Monthly Cash Flow
$677
before debt service
Annual Breakdown
Gross Rental Income$12,600
Less Vacancy−$668
Effective Income$11,932
Less Operating Expenses−$3,804
Net Operating Income$8,128
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Cash-on-Cash Return — Lumberton

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

$
$32,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-0.88%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$36,400
$32,500 down + $3,900 closing
Monthly Mortgage
$636
on $98K loan
Monthly Cash Flow
$-27
after all expenses
Annual Cash Flow
$-320
before taxes
Cash Flow Breakdown
Monthly Rent$1,050
Less Expenses−$441
Less Mortgage−$636
Monthly Cash Flow$-27

Is Lumberton a Good Place to Invest in Rental Property?

Lumberton, NC 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 $130,000 paired with median rents of $1,050/mo produces an estimated cap rate of 7.60%.

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 5.3% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 2.2x, homes cost about 2.2 times the local median income of $58,267. 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 3.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Lumberton offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.

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