Nampa, ID Cap Rate 2.72%
Nampa is the second-largest city in Idaho and the western anchor of the Boise metro — anchored by sustained Boise-metro spillover and Canyon County's rapid growth from California migration. The 2.72% cap rate at a $485,000 median price keeps the 0.36% rent-to-price ratio close to functional than Boise proper. Population growth at 3.2%/yr is among the strongest in the country.
Employment is anchored by the broader Boise metro economy (most working Nampa residents commute to the broader Boise corporate base — Micron, Albertsons, HP, plus the broader Treasure Valley professional employment; the cost-of-living arbitrage between Boise and Nampa makes Nampa attractive for Boise commuters), Saint Alphonsus Medical Center - Nampa, the broader Boise State spillover, the broader Canyon County government, the Northwest Nazarene University (private Christian college), the Idaho Center (multi-use entertainment venue), Amalgamated Sugar Company operations, and a meaningful agricultural and supplier base. Submarkets stratify cleanly: the historic downtown Nampa area is walkable urban with strong appreciation; the broader West Nampa draws professional family rentals; the broader Canyon County extends with continuing new construction; central Nampa offers deeper-value workforce inventory.
Idaho property tax at 0.65% is moderate, with a homeowner's exemption that doesn't apply to non-occupant rentals (model the non-owner-occupied basis). Idaho state income tax is a flat ~5.8%. Insurance is reasonable. The structural advantages: sustained Boise metro in-migration with Canyon County offering the cheaper cost basis; California / Pacific Northwest migration continues; Idaho's broader tax structure favors landlords. The structural risks: same migration-narrative sensitivity as Boise/Meridian — pricing depends on continued remote-work-supported out-of-state buyer flow; rapid greenfield development means new supply continues to come online; broader Canyon County agricultural community has different operational dynamics than urban Nampa. For investors who want Boise metro exposure at cheaper basis than Meridian, Nampa is the most defensible Canyon County option.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Nampa
Nampa's 0.4% rent-to-price ratio is well below the 1% rule. At median prices of $485,000, the $1,760/mo rent produces only $1,100/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 ($97K at 7%) would result in approximately $-1,480/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 23.0x gross rent multiplier and 4.2% vacancy rate position Nampa as a growth-dependent market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 5.2% before financing leverage.
Deal Modeling & Scenarios for Nampa
All figures below are computed from Nampa's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.65% effective rate on the $485,000 median price, the annual tax bill is $3,153 — that's below national average (-39% 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 Nampa continues appreciating at 2.5%/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 | $485K | $1,760 | 2.7% |
| Year 1 | $497K | $1,813 | 2.7% |
| Year 2 | $510K | $1,867 | 2.7% |
| Year 3 | $522K | $1,923 | 2.8% |
| Year 4 | $535K | $1,981 | 2.8% |
| Year 5 | $549K | $2,040 | 2.8% |
Three Financing Scenarios
Same median-priced Nampa 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 | $485K | $1,100 | $13,200 | 2.7% |
| 20% down conventional @ 7% | $112K | $-1,480 | $-17,762 | -15.9% |
| 25% down DSCR @ 8.5% | $141K | $-1,697 | $-20,366 | -14.5% |
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) | $364K | $1,496 | $10,506 | 2.9% | $876 |
| At median | $485K | $1,760 | $11,761 | 2.4% | $980 |
| Above median (~125% price) | $606K | $2,024 | $13,016 | 2.1% | $1,085 |
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 Nampa's historical appreciation rate of 2.5%:
On a $97K down payment, that's a 4.1% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Nampa
Automated checks against the underlying data — surface only the risks that actually apply to Nampa, not generic boilerplate:
Cap Rate Calculator — Nampa
Pre-filled with Nampa medians. Adjust to match a specific property.
Cash-on-Cash Return — Nampa
Factor in financing to see your actual return on invested capital in Nampa.
Is Nampa a Good Place to Invest in Rental Property?
Nampa, ID has a population of 112,200 and has been growing at 3.2% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $485,000 paired with median rents of $1,760/mo produces an estimated cap rate of 2.72%.
Property taxes at 0.65% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.2% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 9.3x, homes cost about 9.3 times the local median income of $52,400. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. 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: At current median prices, Nampa 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.