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MarketsIdahoSandpoint

Cap Rate Analysis: Sandpoint, ID

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

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $630,000 median price and $2,100/mo median rent
Est. Cap Rate
2.39%
1% Rule
0.33%
Fails
GRM
25.0x
Price / Income
10.9x

Market Data

Median Home Price$630,000
Median Monthly Rent$2,100
Property Tax Rate0.64%
Population50,000
Population Growth2.6% / yr
Median Household Income$58,040
Vacancy Rate4.2%
Annual Appreciation2.4%

Cap Rate Calculator — Sandpoint

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.64% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.07%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$13,054
net operating income
Gross Rent Multiplier
25.0x
High (>15)
1% Rule
0.33%
✗ Fails
Monthly Cash Flow
$1,088
before debt service
Annual Breakdown
Gross Rental Income$25,200
Less Vacancy−$1,058
Effective Income$24,142
Less Operating Expenses−$11,088
Net Operating Income$13,054
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Cash-on-Cash Return — Sandpoint

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

$
$157,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-12.67%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$176,400
$157,500 down + $18,900 closing
Monthly Mortgage
$3,080
on $473K loan
Monthly Cash Flow
$-1,862
after all expenses
Annual Cash Flow
$-22,348
before taxes
Cash Flow Breakdown
Monthly Rent$2,100
Less Expenses−$882
Less Mortgage−$3,080
Monthly Cash Flow$-1,862

Is Sandpoint a Good Place to Invest in Rental Property?

Sandpoint, ID has a population of 50,000 and has been growing at 2.6% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $630,000 paired with median rents of $2,100/mo produces an estimated cap rate of 2.39%.

Property taxes at 0.64% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.2% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 10.9x, homes cost about 10.9 times the local median income of $58,040. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.4% 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, Sandpoint 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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