Sierra Vista, AZ Cap Rate: 4.53% — Rental Property Analysis
Sierra Vista is a mid-range market in the West with a small but investable metro of 50,000. At a 4.53% estimated cap rate, this is a moderate market where rents of $1,360/mo lag behind home prices. With a median home price of $260,000 and steady population growth supports long-term rental demand, Sierra Vista 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 $260,000 median price and $1,360/mo median rent
Est. Cap Rate
4.53%
1% Rule
0.52%
Fails
GRM
15.9x
Price / Income
3.9x
Market Data
Median Home Price$260,000
Median Monthly Rent$1,360
Property Tax Rate0.63%
Population50,000
Population Growth1.6% / yr
Median Household Income$66,955
Vacancy Rate5%
Annual Appreciation3%
2026 Market Update: Sierra Vista
Sierra Vista's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $260,000, the $1,360/mo rent produces only $982/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 ($52K at 7%) would result in approximately $-401/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.
With 1.6% annual population growth paired with 3% home appreciation, Sierra Vista offers a rare combination of current cash flow and future equity upside. The 15.9x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Cap Rate Calculator — Sierra Vista
Pre-filled with Sierra Vista 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
3.80%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,876
net operating income
Gross Rent Multiplier
15.9x
High (>15)
1% Rule
0.52%
✗ Fails
Monthly Cash Flow
$823
before debt service
Annual Breakdown
Gross Rental Income$16,320
Less Vacancy−$816
Effective Income$15,504
Less Operating Expenses−$5,628
Net Operating Income$9,876
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 Sierra Vista.
$
$65,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.95%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$72,800
$65,000 down + $7,800 closing
Monthly Mortgage
$1,271
on $195K loan
Monthly Cash Flow
$-482
after all expenses
Annual Cash Flow
$-5,787
before taxes
Cash Flow Breakdown
Monthly Rent$1,360
Less Expenses−$571
Less Mortgage−$1,271
Monthly Cash Flow$-482
Is Sierra Vista a Good Place to Invest in Rental Property?
Sierra Vista, 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 $260,000 paired with median rents of $1,360/mo produces an estimated cap rate of 4.53%.
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 3.9x, homes cost about 3.9 times the local median income of $66,955. 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 3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Sierra Vista presents moderate opportunities. Cap rates near 4.53% 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.