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Macon, GA Cap Rate: 5.31% — Rental Property Analysis

Macon is the central anchor of Middle Georgia — historically a railroad-and-cotton economy, now anchored by Mercer University, the Robins Air Force Base just south in Warner Robins, and Atrium Health Navicent (the dominant regional medical system). The 5.31% cap rate at a $190,000 median price keeps the 0.64% rent-to-price ratio close to functional. Population growth at 0.2%/yr is essentially flat — Macon has historically had weaker demographic trajectory than Atlanta or Savannah.

Employment is anchored by Robins Air Force Base in Warner Robins just south (one of the largest US Air Force bases — Air Force Materiel Command's Warner Robins Air Logistics Complex, the major C-5/C-17/F-15 maintenance and modification facility, with the broader civilian and contractor workforce — collectively one of the largest single-employer sites in Georgia), Atrium Health Navicent (the dominant regional medical system), Mercer University (the private Baptist research university with ~9K students plus the Mercer School of Medicine), the broader Macon-Bibb County government, GEICO regional operations, the broader manufacturing base (Coca-Cola bottling, Geico claims, YKK Corporation zipper manufacturing), and a meaningful logistics base tied to the I-75 corridor. Submarkets stratify cleanly: Vineville and Shirley Hills are walkable urban-historic with strong appreciation; the North Macon / Bass Road area draws professional family rentals at premium pricing; Warner Robins (separate municipality, 15 miles south) is the Robins AFB-adjacent suburban market with BAH-supported rental floors; the broader Bibb County and parts of Macon proper offer deeper-value workforce inventory with the operational complexity that comes with older housing stock.

Georgia property tax at 0.96% is moderate. Georgia state income tax is moving toward a flat ~5.39% structure. Insurance is reasonable. The structural advantages: Robins AFB's mission concentration (aircraft maintenance, modifications, software) makes it one of the less consolidable Air Force bases — BRAC tail risk is materially lower than at single-mission training installations; Mercer + Atrium Navicent provide white-collar tenant depth; Atlanta is 85 miles north with limited but real commuter activity. The structural risks: Macon proper has historically had weaker population trajectory and meaningful per-block variance between gentrified historic areas and older lower-income zones; agricultural commodity cycles affect parts of the broader regional economy. For investors who want Georgia exposure outside the Atlanta/Savannah pricing structure with a defensible federal-employment anchor, Macon is the most underrated Middle Georgia option.

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

Moderate — source deals carefully
Based on $190,000 median price and $1,210/mo median rent
Est. Cap Rate
5.31%
1% Rule
0.64%
Fails
GRM
13.1x
Price / Income
4.9x

Market Data

Median Home Price$190,000
Median Monthly Rent$1,210
Property Tax Rate0.96%
Population157,300
Population Growth0.2% / yr
Median Household Income$38,400
Vacancy Rate7.5%
Annual Appreciation2%

2026 Market Update: Macon

Macon's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $190,000, the $1,210/mo rent produces only $841/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 ($38K at 7%) would result in approximately $-170/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 13.1x gross rent multiplier and 7.5% vacancy rate position Macon as a value-oriented market. With annual appreciation at 2%, total returns (cash flow + equity growth) run approximately 7.3% before financing leverage.

Deal Modeling & Scenarios for Macon

All figures below are computed from Macon's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.

Property Tax Bill in Real Dollars

Annual$1,824
Monthly$152
% of Gross Rent12.6%

At 0.96% effective rate on the $190,000 median price, the annual tax bill is $1,824 — that's near national average (-9% 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 Macon continues appreciating at 2%/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:

YearEst. PriceEst. Rent/MoCap Rate
Today$190K$1,2105.3%
Year 1$194K$1,2465.4%
Year 2$198K$1,2845.4%
Year 3$202K$1,3225.5%
Year 4$206K$1,3625.5%
Year 5$210K$1,4035.6%

Three Financing Scenarios

Same median-priced Macon 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.

ScenarioCash InvestedMonthly Cash FlowAnnual CFCash-on-Cash
All cash$190K$841$10,0875.3%
20% down conventional @ 7%$44K$-170$-2,043-4.7%
25% down DSCR @ 8.5%$55K$-255$-3,063-5.6%

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:

TierPriceRent/MoNOI/YrCap RateMonthly CF
Below median (~75% price)$143K$1,029$7,5085.3%$626
At median$190K$1,210$8,5244.5%$710
Above median (~125% price)$238K$1,392$9,5494.0%$796

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 Macon's historical appreciation rate of 2%:

Cash Flow (5yr)$-10,213
Appreciation$20K
Principal Paydown$11K
Total Return$21K

On a $38K down payment, that's a 55.2% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.

Risk Flags Specific to Macon

Automated checks against the underlying data — surface only the risks that actually apply to Macon, not generic boilerplate:

Watch closelyVacancy rate of 7.5% is well above the ~6.5% national average. Budget at least 9% vacancy in pro-formas, and plan for longer lease-up periods.

Cap Rate Calculator — Macon

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.96% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.33%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,235
net operating income
Gross Rent Multiplier
13.1x
Good (<15)
1% Rule
0.64%
✗ Fails
Monthly Cash Flow
$686
before debt service
Annual Breakdown
Gross Rental Income$14,520
Less Vacancy−$1,089
Effective Income$13,431
Less Operating Expenses−$5,196
Net Operating Income$8,235
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Cash-on-Cash Return — Macon

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

$
$47,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.12%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$53,200
$47,500 down + $5,700 closing
Monthly Mortgage
$929
on $143K loan
Monthly Cash Flow
$-227
after all expenses
Annual Cash Flow
$-2,724
before taxes
Cash Flow Breakdown
Monthly Rent$1,210
Less Expenses−$508
Less Mortgage−$929
Monthly Cash Flow$-227

Is Macon a Good Place to Invest in Rental Property?

Macon, GA has a population of 157,300 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $190,000 paired with median rents of $1,210/mo produces an estimated cap rate of 5.31%.

Property taxes at 0.96% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 7.5% runs above average, which increases cash flow volatility and warrants conservative underwriting.

At a price-to-income ratio of 4.9x, homes cost about 4.9 times the local median income of $38,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Macon presents moderate opportunities. Cap rates near 5.31% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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