Spartanburg is a mid-range market in the South with a small but investable metro of 40,000. At a 4.44% estimated cap rate, this is a moderate market where rents of $1,420/mo lag behind home prices. With a median home price of $275,000 and steady population growth supports long-term rental demand, Spartanburg 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
Spartanburg's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $275,000, the $1,420/mo rent produces only $1,018/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 ($55K at 7%) would result in approximately $-445/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 16.1x gross rent multiplier and 6.2% vacancy rate position Spartanburg as a balanced market. With annual appreciation at 2.8%, total returns (cash flow + equity growth) run approximately 7.2% before financing leverage.
Pre-filled with Spartanburg medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Spartanburg.
Spartanburg, SC has a population of 40,000 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $275,000 paired with median rents of $1,420/mo produces an estimated cap rate of 4.44%.
Property taxes at 0.57% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 7.2x, homes cost about 7.2 times the local median income of $38,400. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Spartanburg presents moderate opportunities. Cap rates near 4.44% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.