Orangeburg, SC Cap Rate 8.61%
Orangeburg is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 8.61% estimated cap rate, this is a high-yield market where rents of $1,320/mo lag behind home prices. With a median home price of $150,000 and steady population growth supports long-term rental demand, Orangeburg 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
Market Data
2026 Market Update: Orangeburg
At a 0.9% rent-to-price ratio, Orangeburg falls just below the 1% rule threshold. A median-priced property at $150,000 with $1,320/mo rent yields approximately $1,076/mo in NOI — workable with favorable financing but not a slam-dunk cash flow market.
With 20% down ($30K) on a 7% conventional loan, estimated monthly cash flow is $278 — a 11.1% cash-on-cash return. That's strong enough to weather vacancies and unexpected repairs without dipping into reserves.
With 1.9% annual population growth paired with 3.4% home appreciation, Orangeburg offers a rare combination of current cash flow and future equity upside. The 9.5x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Deal Modeling & Scenarios for Orangeburg
All figures below are computed from Orangeburg's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.57% effective rate on the $150,000 median price, the annual tax bill is $855 — that's very low (bottom 15% of US markets) (-46% 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 Orangeburg continues appreciating at 3.4%/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 | $150K | $1,320 | 8.6% |
| Year 1 | $155K | $1,360 | 8.6% |
| Year 2 | $160K | $1,400 | 8.5% |
| Year 3 | $166K | $1,442 | 8.5% |
| Year 4 | $171K | $1,486 | 8.5% |
| Year 5 | $177K | $1,530 | 8.4% |
Three Financing Scenarios
Same median-priced Orangeburg 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 | $150K | $1,076 | $12,914 | 8.6% |
| 20% down conventional @ 7% | $35K | $278 | $3,338 | 9.7% |
| 25% down DSCR @ 8.5% | $44K | $211 | $2,532 | 5.8% |
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) | $113K | $1,122 | $9,478 | 8.4% | $790 |
| At median | $150K | $1,320 | $10,979 | 7.3% | $915 |
| Above median (~125% price) | $188K | $1,518 | $12,481 | 6.7% | $1,040 |
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 Orangeburg's historical appreciation rate of 3.4%:
On a $30K down payment, that's a 176.6% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Orangeburg
Automated checks against the underlying data — surface only the risks that actually apply to Orangeburg, not generic boilerplate:
Cap Rate Calculator — Orangeburg
Pre-filled with Orangeburg medians. Adjust to match a specific property.
Cash-on-Cash Return — Orangeburg
Factor in financing to see your actual return on invested capital in Orangeburg.
Is Orangeburg a Good Place to Invest in Rental Property?
Orangeburg, SC 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 $150,000 paired with median rents of $1,320/mo produces an estimated cap rate of 8.61%.
Property taxes at 0.57% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.0x, homes cost about 3.0 times the local median income of $49,486. 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 3.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Orangeburg offers attractive fundamentals for rental investors. Strong population growth, low taxes, and cap rates above 6% put it in the upper tier of investable markets.