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Cap Rate Analysis: Show Low, AZ

Investment metrics, interactive calculators, and data-driven analysis for Show Low 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 $390,000 median price and $1,770/mo median rent
Est. Cap Rate
3.74%
1% Rule
0.45%
Fails
GRM
18.4x
Price / Income
5.8x

Market Data

Median Home Price$390,000
Median Monthly Rent$1,770
Property Tax Rate0.63%
Population50,000
Population Growth1.6% / yr
Median Household Income$66,955
Vacancy Rate5%
Annual Appreciation3%

Cap Rate Calculator — Show Low

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.63% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.16%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,330
net operating income
Gross Rent Multiplier
18.4x
High (>15)
1% Rule
0.45%
✗ Fails
Monthly Cash Flow
$1,028
before debt service
Annual Breakdown
Gross Rental Income$21,240
Less Vacancy−$1,062
Effective Income$20,178
Less Operating Expenses−$7,848
Net Operating Income$12,330
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Cash-on-Cash Return — Show Low

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

$
$97,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.67%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$109,200
$97,500 down + $11,700 closing
Monthly Mortgage
$1,907
on $293K loan
Monthly Cash Flow
$-880
after all expenses
Annual Cash Flow
$-10,559
before taxes
Cash Flow Breakdown
Monthly Rent$1,770
Less Expenses−$743
Less Mortgage−$1,907
Monthly Cash Flow$-880

Is Show Low a Good Place to Invest in Rental Property?

Show Low, AZ has a population of 50,000 and has been growing at 1.6% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $390,000 paired with median rents of $1,770/mo produces an estimated cap rate of 3.74%.

Property taxes at 0.63% 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 5.8x, homes cost about 5.8 times the local median income of $66,955. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3% 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, Show Low 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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