Savannah, GA Cap Rate: 4.07% — Rental Property Analysis
Savannah is a mid-range market in the South with a mid-sized city of 150,975. At a 4.07% estimated cap rate, this is a moderate market where rents of $1,780/mo lag behind home prices. With a median home price of $345,000 and steady population growth supports long-term rental demand, Savannah offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $345,000 median price and $1,780/mo median rent
Est. Cap Rate
4.07%
1% Rule
0.52%
Fails
GRM
16.2x
Price / Income
7.5x
Market Data
Median Home Price$345,000
Median Monthly Rent$1,780
Property Tax Rate0.96%
Population150,975
Population Growth1.2% / yr
Median Household Income$46,200
Vacancy Rate5.8%
Annual Appreciation3.4%
2026 Market Update: Savannah
Savannah's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $345,000, the $1,780/mo rent produces only $1,171/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 ($69K at 7%) would result in approximately $-664/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 16.2x gross rent multiplier and 5.8% vacancy rate position Savannah as a balanced market. With annual appreciation at 3.4%, total returns (cash flow + equity growth) run approximately 7.5% before financing leverage.
Cap Rate Calculator — Savannah
Pre-filled with Savannah medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.96% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.36%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,589
net operating income
Gross Rent Multiplier
16.2x
High (>15)
1% Rule
0.52%
✗ Fails
Monthly Cash Flow
$966
before debt service
Annual Breakdown
Gross Rental Income$21,360
Less Vacancy−$1,239
Effective Income$20,121
Less Operating Expenses−$8,532
Net Operating Income$11,589
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Factor in financing to see your actual return on invested capital in Savannah.
$
$86,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.13%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$96,600
$86,250 down + $10,350 closing
Monthly Mortgage
$1,687
on $259K loan
Monthly Cash Flow
$-655
after all expenses
Annual Cash Flow
$-7,858
before taxes
Cash Flow Breakdown
Monthly Rent$1,780
Less Expenses−$748
Less Mortgage−$1,687
Monthly Cash Flow$-655
Is Savannah a Good Place to Invest in Rental Property?
Savannah, GA has a population of 150,975 and has been growing at 1.2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $345,000 paired with median rents of $1,780/mo produces an estimated cap rate of 4.07%.
Property taxes at 0.96% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 7.5x, homes cost about 7.5 times the local median income of $46,200. 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: Savannah presents moderate opportunities. Cap rates near 4.07% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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