Muskogee, OK Cap Rate: 7.22% — Rental Property Analysis
Muskogee is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 7.22% estimated cap rate, this is a high-yield market where rents of $1,220/mo lag behind home prices. With a median home price of $155,000 and steady population growth supports long-term rental demand, Muskogee stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Strong investment fundamentals
Based on $155,000 median price and $1,220/mo median rent
Est. Cap Rate
7.22%
1% Rule
0.79%
Fails
GRM
10.6x
Price / Income
2.8x
Market Data
Median Home Price$155,000
Median Monthly Rent$1,220
Property Tax Rate0.88%
Population50,000
Population Growth0.9% / yr
Median Household Income$56,350
Vacancy Rate5.8%
Annual Appreciation2.5%
2026 Market Update: Muskogee
Muskogee's 0.8% rent-to-price ratio is well below the 1% rule. At median prices of $155,000, the $1,220/mo rent produces only $932/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
On a conventional loan with 20% down ($31K) at 7%, estimated monthly cash flow is $107 — a thin 4.1% cash-on-cash return. Investors should negotiate below asking price or target properties with above-median rents to build a meaningful cash flow buffer.
The 10.6x gross rent multiplier and 5.8% vacancy rate position Muskogee as a value-oriented market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 9.7% before financing leverage.
Cap Rate Calculator — Muskogee
Pre-filled with Muskogee medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.88% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
5.91%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$9,159
net operating income
Gross Rent Multiplier
10.6x
Good (<15)
1% Rule
0.79%
✗ Fails
Monthly Cash Flow
$763
before debt service
Annual Breakdown
Gross Rental Income$14,640
Less Vacancy−$849
Effective Income$13,791
Less Operating Expenses−$4,632
Net Operating Income$9,159
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Factor in financing to see your actual return on invested capital in Muskogee.
$
$38,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-1.38%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$43,400
$38,750 down + $4,650 closing
Monthly Mortgage
$758
on $116K loan
Monthly Cash Flow
$-50
after all expenses
Annual Cash Flow
$-598
before taxes
Cash Flow Breakdown
Monthly Rent$1,220
Less Expenses−$512
Less Mortgage−$758
Monthly Cash Flow$-50
Is Muskogee a Good Place to Invest in Rental Property?
Muskogee, OK has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $155,000 paired with median rents of $1,220/mo produces an estimated cap rate of 7.22%.
Property taxes at 0.88% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 2.8x, homes cost about 2.8 times the local median income of $56,350. 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 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: Muskogee 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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