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Cap Rate Analysis: Norfolk, VA

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

Challenging for pure cash flow
Based on $275,000 median price and $1,380/mo median rent
Est. Cap Rate
3.85%
1% Rule
0.50%
Fails
GRM
16.6x
Price / Income
5.2x

Market Data

Median Home Price$275,000
Median Monthly Rent$1,380
Property Tax Rate1.05%
Population244,300
Population Growth0.3% / yr
Median Household Income$53,200
Vacancy Rate5.4%
Annual Appreciation2.8%

Cap Rate Calculator — Norfolk

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.05% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.16%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,694
net operating income
Gross Rent Multiplier
16.6x
High (>15)
1% Rule
0.50%
✗ Fails
Monthly Cash Flow
$724
before debt service
Annual Breakdown
Gross Rental Income$16,560
Less Vacancy−$894
Effective Income$15,666
Less Operating Expenses−$6,972
Net Operating Income$8,694

Cash-on-Cash Return — Norfolk

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

$
$68,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.49%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$77,000
$68,750 down + $8,250 closing
Monthly Mortgage
$1,345
on $206K loan
Monthly Cash Flow
$-545
after all expenses
Annual Cash Flow
$-6,535
before taxes
Cash Flow Breakdown
Monthly Rent$1,380
Less Expenses−$580
Less Mortgage−$1,345
Monthly Cash Flow$-545

Is Norfolk a Good Place to Invest in Rental Property?

Norfolk, VA has a population of 244,300 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $275,000 paired with median rents of $1,380/mo produces an estimated cap rate of 3.85%.

Property taxes at 1.05% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.4% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.2x, homes cost about 5.2 times the local median income of $53,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.8% 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, Norfolk 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.

Run a BRRRR analysis for Norfolk
Model a buy-rehab-refinance deal with Norfolk data pre-loaded.
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