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Salt Lake City, UT

Rental Property Investment Guide: Salt Lake City, UT

Updated 2026 · Based on median market data for Salt Lake City, UT

Cap Rate
2.74%
Median Price
$480K
Rent/Mo
$1,720
1% Rule
0.36%
Fails

Market Snapshot

Salt Lake City sits in the West with a population of 204,657 growing rapidly at 1.4% annually. The median home costs $480,000 while rents average $1,720/mo, producing an estimated cap rate of 2.74%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.

Who Should Invest Here

Salt Lake City works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 2.74% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.

Deal Criteria for Salt Lake City

Target properties priced 15-25% below the $480,000 median — around $384,000 or less. At this price point with $1,720/mo rents, your cap rate improves to roughly 3.8%. Factor in 0.58% property taxes ($2,784/yr), budget 5% of gross rent for maintenance, and underwrite to a 4.2% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $2,886.

Risks and Considerations

Higher price points mean more capital at risk and tighter cash flow margins — ensure you have adequate reserves. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific Salt Lake City property using our cap rate calculator (pre-filled with Salt Lake City data). Compare Salt Lake City against similar markets in the West region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

Full Salt Lake City Analysis →Cap Rate CalculatorBRRRR Calculator

More Salt Lake City Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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Scottsdale, AZ$620K · $2,200/mo
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Flagstaff, AZ$450K · $1,680/mo
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