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Cap Rate Analysis: Riverside, CA

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

Challenging for pure cash flow
Based on $520,000 median price and $2,050/mo median rent
Est. Cap Rate
2.94%
1% Rule
0.39%
Fails
GRM
21.1x
Price / Income
8.1x

Market Data

Median Home Price$520,000
Median Monthly Rent$2,050
Property Tax Rate0.78%
Population321,570
Population Growth1.2% / yr
Median Household Income$64,200
Vacancy Rate4.5%
Annual Appreciation3.2%

Cap Rate Calculator — Riverside

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.78% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.49%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,933
net operating income
Gross Rent Multiplier
21.1x
High (>15)
1% Rule
0.39%
✗ Fails
Monthly Cash Flow
$1,078
before debt service
Annual Breakdown
Gross Rental Income$24,600
Less Vacancy−$1,107
Effective Income$23,493
Less Operating Expenses−$10,560
Net Operating Income$12,933

Cash-on-Cash Return — Riverside

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

$
$130,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.16%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$145,600
$130,000 down + $15,600 closing
Monthly Mortgage
$2,543
on $390K loan
Monthly Cash Flow
$-1,354
after all expenses
Annual Cash Flow
$-16,242
before taxes
Cash Flow Breakdown
Monthly Rent$2,050
Less Expenses−$861
Less Mortgage−$2,543
Monthly Cash Flow$-1,354

Is Riverside a Good Place to Invest in Rental Property?

Riverside, CA has a population of 321,570 and has been growing at 1.2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $520,000 paired with median rents of $2,050/mo produces an estimated cap rate of 2.94%.

Property taxes at 0.78% 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 8.1x, homes cost about 8.1 times the local median income of $64,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.2% 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, Riverside 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 Riverside
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