North Port, FL Cap Rate 4.28%
North Port is a higher-priced market in the South with a small but investable metro of 50,000. At a 4.28% estimated cap rate, this is a moderate market where rents of $2,090/mo lag behind home prices. With a median home price of $400,000 and steady population growth supports long-term rental demand, North Port 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: North Port
North Port's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $400,000, the $2,090/mo rent produces only $1,428/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 ($80K at 7%) would result in approximately $-700/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.
With 1.9% annual population growth paired with 3.7% home appreciation, North Port offers a rare combination of current cash flow and future equity upside. The 15.9x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Deal Modeling & Scenarios for North Port
All figures below are computed from North Port's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.86% effective rate on the $400,000 median price, the annual tax bill is $3,440 — that's near national average (-19% 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 North Port continues appreciating at 3.7%/yr while rents grow at a conservative 3%/yr, cap rate compresses as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $400K | $2,090 | 4.3% |
| Year 1 | $415K | $2,153 | 4.3% |
| Year 2 | $430K | $2,217 | 4.2% |
| Year 3 | $446K | $2,284 | 4.2% |
| Year 4 | $463K | $2,352 | 4.2% |
| Year 5 | $480K | $2,423 | 4.1% |
Three Financing Scenarios
Same median-priced North Port 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 | $400K | $1,428 | $17,136 | 4.3% |
| 20% down conventional @ 7% | $92K | $-700 | $-8,400 | -9.1% |
| 25% down DSCR @ 8.5% | $116K | $-879 | $-10,548 | -9.1% |
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) | $300K | $1,777 | $13,023 | 4.3% | $1,085 |
| At median | $400K | $2,090 | $14,723 | 3.7% | $1,227 |
| Above median (~125% price) | $500K | $2,404 | $16,432 | 3.3% | $1,369 |
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 North Port's historical appreciation rate of 3.7%:
On a $80K down payment, that's a 77.1% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to North Port
Automated checks against the underlying data — surface only the risks that actually apply to North Port, not generic boilerplate:
Cap Rate Calculator — North Port
Pre-filled with North Port medians. Adjust to match a specific property.
Cash-on-Cash Return — North Port
Factor in financing to see your actual return on invested capital in North Port.
Is North Port a Good Place to Invest in Rental Property?
North Port, FL has a population of 50,000 and has been growing at 1.9% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $400,000 paired with median rents of $2,090/mo produces an estimated cap rate of 4.28%.
Property taxes at 0.86% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 7.9x, homes cost about 7.9 times the local median income of $50,639. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.7% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.
Bottom line: North Port presents moderate opportunities. Cap rates near 4.28% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.