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Cap Rate Analysis: Springfield, MA

Investment metrics, interactive calculators, and data-driven analysis for Springfield rental properties.

Moderate — source deals carefully
Based on $230,000 median price and $1,280/mo median rent
Est. Cap Rate
4.24%
1% Rule
0.56%
Fails
GRM
15.0x
Price / Income
5.7x

Market Data

Median Home Price$230,000
Median Monthly Rent$1,280
Property Tax Rate1.22%
Population155,929
Population Growth0.1% / yr
Median Household Income$40,200
Vacancy Rate6.2%
Annual Appreciation2.4%

Cap Rate Calculator — Springfield

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.22% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.44%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,916
net operating income
Gross Rent Multiplier
15.0x
Good (<15)
1% Rule
0.56%
✗ Fails
Monthly Cash Flow
$660
before debt service
Annual Breakdown
Gross Rental Income$15,360
Less Vacancy−$952
Effective Income$14,408
Less Operating Expenses−$6,492
Net Operating Income$7,916

Cash-on-Cash Return — Springfield

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

$
$57,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.13%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$64,400
$57,500 down + $6,900 closing
Monthly Mortgage
$1,125
on $173K loan
Monthly Cash Flow
$-383
after all expenses
Annual Cash Flow
$-4,591
before taxes
Cash Flow Breakdown
Monthly Rent$1,280
Less Expenses−$538
Less Mortgage−$1,125
Monthly Cash Flow$-383

Is Springfield a Good Place to Invest in Rental Property?

Springfield, MA has a population of 155,929 and has been growing at 0.1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $230,000 paired with median rents of $1,280/mo produces an estimated cap rate of 4.24%.

Property taxes at 1.22% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6.2% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.7x, homes cost about 5.7 times the local median income of $40,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Springfield presents moderate opportunities. Cap rates near 4.24% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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