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Cap Rate Analysis: Overland Park, KS

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

Challenging for pure cash flow
Based on $350,000 median price and $1,620/mo median rent
Est. Cap Rate
3.12%
1% Rule
0.46%
Fails
GRM
18.0x
Price / Income
4.2x

Market Data

Median Home Price$350,000
Median Monthly Rent$1,620
Property Tax Rate1.38%
Population199,600
Population Growth1.2% / yr
Median Household Income$82,400
Vacancy Rate4.5%
Annual Appreciation3%

Cap Rate Calculator — Overland Park

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.38% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.52%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,833
net operating income
Gross Rent Multiplier
18.0x
High (>15)
1% Rule
0.46%
✗ Fails
Monthly Cash Flow
$736
before debt service
Annual Breakdown
Gross Rental Income$19,440
Less Vacancy−$875
Effective Income$18,565
Less Operating Expenses−$9,732
Net Operating Income$8,833

Cash-on-Cash Return — Overland Park

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

$
$87,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.44%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$98,000
$87,500 down + $10,500 closing
Monthly Mortgage
$1,711
on $263K loan
Monthly Cash Flow
$-771
after all expenses
Annual Cash Flow
$-9,256
before taxes
Cash Flow Breakdown
Monthly Rent$1,620
Less Expenses−$680
Less Mortgage−$1,711
Monthly Cash Flow$-771

Is Overland Park a Good Place to Invest in Rental Property?

Overland Park, KS has a population of 199,600 and has been growing at 1.2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $350,000 paired with median rents of $1,620/mo produces an estimated cap rate of 3.12%.

Property taxes at 1.38% fall within the national average range and shouldn't present unusual challenges. 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 4.2x, homes cost about 4.2 times the local median income of $82,400. 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% 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, Overland Park 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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