Morgantown, WV Cap Rate 5.49%
Morgantown is a budget-friendly market in the South with a small but investable metro of 50,000. At a 5.49% estimated cap rate, this is a moderate market where rents of $1,330/mo lag behind home prices. With a median home price of $215,000 and the population has been declining, which investors should factor into long-term projections, Morgantown offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Morgantown
Morgantown's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $215,000, the $1,330/mo rent produces only $983/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 ($43K at 7%) would result in approximately $-161/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 13.5x gross rent multiplier and 7.5% vacancy rate position Morgantown as a value-oriented market. With annual appreciation at 1.4%, total returns (cash flow + equity growth) run approximately 6.9% before financing leverage.
Deal Modeling & Scenarios for Morgantown
All figures below are computed from Morgantown's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.58% effective rate on the $215,000 median price, the annual tax bill is $1,247 — that's very low (bottom 15% of US markets) (-45% 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 Morgantown continues appreciating at 1.4%/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 | $215K | $1,330 | 5.5% |
| Year 1 | $218K | $1,370 | 5.6% |
| Year 2 | $221K | $1,411 | 5.7% |
| Year 3 | $224K | $1,453 | 5.7% |
| Year 4 | $227K | $1,497 | 5.8% |
| Year 5 | $230K | $1,542 | 5.9% |
Three Financing Scenarios
Same median-priced Morgantown 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 | $215K | $983 | $11,796 | 5.5% |
| 20% down conventional @ 7% | $49K | $-161 | $-1,930 | -3.9% |
| 25% down DSCR @ 8.5% | $62K | $-257 | $-3,084 | -4.9% |
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) | $161K | $1,131 | $8,802 | 5.5% | $734 |
| At median | $215K | $1,330 | $10,102 | 4.7% | $842 |
| Above median (~125% price) | $269K | $1,529 | $11,402 | 4.2% | $950 |
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 Morgantown's historical appreciation rate of 1.4%:
On a $43K down payment, that's a 43.6% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Morgantown
Automated checks against the underlying data — surface only the risks that actually apply to Morgantown, not generic boilerplate:
Cap Rate Calculator — Morgantown
Pre-filled with Morgantown medians. Adjust to match a specific property.
Cash-on-Cash Return — Morgantown
Factor in financing to see your actual return on invested capital in Morgantown.
Is Morgantown a Good Place to Invest in Rental Property?
Morgantown, WV has a population of 50,000 and has been growing at -0.4% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $215,000 paired with median rents of $1,330/mo produces an estimated cap rate of 5.49%.
Property taxes at 0.58% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. 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 5.1x, homes cost about 5.1 times the local median income of $42,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 1.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Morgantown presents moderate opportunities. Cap rates near 5.49% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.