Shawnee, OK Cap Rate: 5.10% — Rental Property Analysis
Shawnee is a budget-friendly market in the South with a small but investable metro of 50,000. At a 5.10% estimated cap rate, this is a moderate market where rents of $1,140/mo lag behind home prices. With a median home price of $190,000 and steady population growth supports long-term rental demand, Shawnee 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
◈
Moderate — source deals carefully
Based on $190,000 median price and $1,140/mo median rent
Est. Cap Rate
5.10%
1% Rule
0.60%
Fails
GRM
13.9x
Price / Income
3.4x
Market Data
Median Home Price$190,000
Median Monthly Rent$1,140
Property Tax Rate0.88%
Population50,000
Population Growth0.9% / yr
Median Household Income$56,350
Vacancy Rate5.8%
Annual Appreciation2.5%
2026 Market Update: Shawnee
Shawnee's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $190,000, the $1,140/mo rent produces only $808/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 ($38K at 7%) would result in approximately $-203/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 13.9x gross rent multiplier and 5.8% vacancy rate position Shawnee as a value-oriented market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 7.6% before financing leverage.
Cap Rate Calculator — Shawnee
Pre-filled with Shawnee medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.88% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.21%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,003
net operating income
Gross Rent Multiplier
13.9x
Good (<15)
1% Rule
0.60%
✗ Fails
Monthly Cash Flow
$667
before debt service
Annual Breakdown
Gross Rental Income$13,680
Less Vacancy−$793
Effective Income$12,887
Less Operating Expenses−$4,884
Net Operating Income$8,003
Sponsored
Analyze Deals Faster with DealCheck
Import any property, get instant investment analysis — cap rates, cash flow, rehab estimates, and offer calculations. Used by 350,000+ investors.
Factor in financing to see your actual return on invested capital in Shawnee.
$
$47,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.04%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$53,200
$47,500 down + $5,700 closing
Monthly Mortgage
$929
on $143K loan
Monthly Cash Flow
$-268
after all expenses
Annual Cash Flow
$-3,216
before taxes
Cash Flow Breakdown
Monthly Rent$1,140
Less Expenses−$479
Less Mortgage−$929
Monthly Cash Flow$-268
Is Shawnee a Good Place to Invest in Rental Property?
Shawnee, OK has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $190,000 paired with median rents of $1,140/mo produces an estimated cap rate of 5.10%.
Property taxes at 0.88% 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 3.4x, homes cost about 3.4 times the local median income of $56,350. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Shawnee presents moderate opportunities. Cap rates near 5.10% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.