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MarketsUtahOgden

Ogden, UT Cap Rate: 2.30% — Rental Property Analysis

Ogden is the cheaper Wasatch Front — north of Salt Lake City, with direct access to the same ski-and-outdoor amenities, anchored by a major Air Force base, and meaningfully cheaper than SLC or Provo. The 2.30% cap rate at a $510,000 median price keeps the 0.32% rent-to-price ratio closer to functional than the rest of the Wasatch Front. Population growth at 1.2%/yr is steady, helped by SLC-spillover migration and continued military presence.

Employment is anchored by Hill Air Force Base (the largest single-site employer in Utah — F-35 sustainment, the Ogden Air Logistics Complex, plus broader DoD contracting), the IRS West Service Center (one of the larger federal civilian employment sites in the country), Weber State University, Intermountain Healthcare and the broader medical sector, Williams International (jet engine manufacturing), the Union Pacific Railroad operations (Ogden was historically the major Western US rail junction), and a growing outdoor-recreation industry (Salomon, Goode, Browning, and the broader Ogden outdoor brands cluster). Submarkets stratify cleanly: East Ogden / Mount Ogden Park area is premium urban-historic with foothill views and strong appreciation; the South Ogden / Washington Heights area draws professional and military officer family rentals; West Ogden offers deeper-value workforce inventory; the broader Weber and Davis County suburbs (Layton, Roy, Clearfield) extend the metro economy with Hill AFB commuters.

Utah property tax at 0.59% is among the lowest nationally. Utah state income tax is a flat ~4.65%. Insurance is reasonable. The structural advantages: BAH (Basic Allowance for Housing) sets a predictable rent floor in submarkets near Hill AFB; federal employment (IRS + Hill) is genuinely durable across economic cycles; outdoor-lifestyle migration has been continuous and shows no sign of slowing. The structural risks to underwrite: any major BRAC or force-structure decision affecting Hill would directly ripple to local rents; the IRS service center has periodically been targeted for consolidation in federal cost-cutting cycles. For investors who want Wasatch Front exposure with cash-flow math that actually pencils, Ogden is the most underrated Utah choice.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $510,000 median price and $1,640/mo median rent
Est. Cap Rate
2.30%
1% Rule
0.32%
Fails
GRM
25.9x
Price / Income
10.5x

Market Data

Median Home Price$510,000
Median Monthly Rent$1,640
Property Tax Rate0.59%
Population87,773
Population Growth1.2% / yr
Median Household Income$48,600
Vacancy Rate4.5%
Annual Appreciation2.7%

2026 Market Update: Ogden

Ogden's 0.3% rent-to-price ratio is well below the 1% rule. At median prices of $510,000, the $1,640/mo rent produces only $975/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 ($102K at 7%) would result in approximately $-1,738/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 25.9x gross rent multiplier and 4.5% vacancy rate position Ogden as a growth-dependent market. With annual appreciation at 2.7%, total returns (cash flow + equity growth) run approximately 5.0% before financing leverage.

Deal Modeling & Scenarios for Ogden

All figures below are computed from Ogden's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.

Property Tax Bill in Real Dollars

Annual$3,009
Monthly$251
% of Gross Rent15.3%

At 0.59% effective rate on the $510,000 median price, the annual tax bill is $3,009 — that's very low (bottom 15% of US markets) (-44% 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 Ogden continues appreciating at 2.7%/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:

YearEst. PriceEst. Rent/MoCap Rate
Today$510K$1,6402.3%
Year 1$524K$1,6892.3%
Year 2$538K$1,7402.3%
Year 3$552K$1,7922.3%
Year 4$567K$1,8462.3%
Year 5$583K$1,9012.3%

Three Financing Scenarios

Same median-priced Ogden 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.

ScenarioCash InvestedMonthly Cash FlowAnnual CFCash-on-Cash
All cash$510K$975$11,7052.3%
20% down conventional @ 7%$117K$-1,738$-20,853-17.8%
25% down DSCR @ 8.5%$148K$-1,966$-23,592-16.0%

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:

TierPriceRent/MoNOI/YrCap RateMonthly CF
Below median (~75% price)$383K$1,394$9,5122.5%$793
At median$510K$1,640$10,5972.1%$883
Above median (~125% price)$638K$1,886$11,6811.8%$973

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 Ogden's historical appreciation rate of 2.7%:

Cash Flow (5yr)$-104,265
Appreciation$73K
Principal Paydown$31K
Total Return$-995

On a $102K down payment, that's a -1.0% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.

Risk Flags Specific to Ogden

Automated checks against the underlying data — surface only the risks that actually apply to Ogden, not generic boilerplate:

Watch closelyRent-to-price ratio of 0.32% is well below the 1% rule. Achieving positive cash flow at median prices requires below-market purchases, larger down payments, or value-add strategies.
Worth notingPrice-to-income ratio of 10.5x suggests homeownership is stretched locally — supports rental demand, but limits the buyer pool for any future exit.

Cap Rate Calculator — Ogden

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.59% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.00%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,202
net operating income
Gross Rent Multiplier
25.9x
High (>15)
1% Rule
0.32%
✗ Fails
Monthly Cash Flow
$850
before debt service
Annual Breakdown
Gross Rental Income$19,680
Less Vacancy−$886
Effective Income$18,794
Less Operating Expenses−$8,592
Net Operating Income$10,202
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Cash-on-Cash Return — Ogden

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

$
$127,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-12.96%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$142,800
$127,500 down + $15,300 closing
Monthly Mortgage
$2,494
on $383K loan
Monthly Cash Flow
$-1,543
after all expenses
Annual Cash Flow
$-18,511
before taxes
Cash Flow Breakdown
Monthly Rent$1,640
Less Expenses−$689
Less Mortgage−$2,494
Monthly Cash Flow$-1,543

Is Ogden a Good Place to Invest in Rental Property?

Ogden, UT has a population of 87,773 and has been growing at 1.2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $510,000 paired with median rents of $1,640/mo produces an estimated cap rate of 2.30%.

Property taxes at 0.59% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.5% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 10.5x, homes cost about 10.5 times the local median income of $48,600. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.7% 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, Ogden 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.

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