Rock Hill, SC Cap Rate: 3.73% — Rental Property Analysis
Rock Hill is a higher-priced market in the South with a smaller market with 78,000 residents. At a 3.73% estimated cap rate, this is a appreciation-focused market where rents of $1,720/mo lag behind home prices. With a median home price of $385,000 and rapid population growth is driving housing demand, Rock Hill is primarily an appreciation play that requires creative strategies to generate positive cash flow.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Challenging for pure cash flow
Based on $385,000 median price and $1,720/mo median rent
Est. Cap Rate
3.73%
1% Rule
0.45%
Fails
GRM
18.7x
Price / Income
7.3x
Market Data
Median Home Price$385,000
Median Monthly Rent$1,720
Property Tax Rate0.56%
Population78,000
Population Growth2.2% / yr
Median Household Income$52,400
Vacancy Rate5%
Annual Appreciation3.4%
2026 Market Update: Rock Hill
Rock Hill's 0.4% rent-to-price ratio is well below the 1% rule. At median prices of $385,000, the $1,720/mo rent produces only $1,198/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 ($77K at 7%) would result in approximately $-850/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 18.7x gross rent multiplier and 5% vacancy rate position Rock Hill as a growth-dependent market. With annual appreciation at 3.4%, total returns (cash flow + equity growth) run approximately 7.1% before financing leverage.
Cap Rate Calculator — Rock Hill
Pre-filled with Rock Hill medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.56% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.17%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,192
net operating income
Gross Rent Multiplier
18.7x
High (>15)
1% Rule
0.45%
✗ Fails
Monthly Cash Flow
$1,016
before debt service
Annual Breakdown
Gross Rental Income$20,640
Less Vacancy−$1,032
Effective Income$19,608
Less Operating Expenses−$7,416
Net Operating Income$12,192
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Factor in financing to see your actual return on invested capital in Rock Hill.
$
$96,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.85%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$107,800
$96,250 down + $11,550 closing
Monthly Mortgage
$1,882
on $289K loan
Monthly Cash Flow
$-884
after all expenses
Annual Cash Flow
$-10,613
before taxes
Cash Flow Breakdown
Monthly Rent$1,720
Less Expenses−$722
Less Mortgage−$1,882
Monthly Cash Flow$-884
Is Rock Hill a Good Place to Invest in Rental Property?
Rock Hill, SC has a population of 78,000 and has been growing at 2.2% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $385,000 paired with median rents of $1,720/mo produces an estimated cap rate of 3.73%.
Property taxes at 0.56% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 7.3x, homes cost about 7.3 times the local median income of $52,400. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. 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: At current median prices, Rock Hill 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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