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Best Cities for Rental Property in North Carolina

36 North Carolina cities ranked by estimated cap rate. The average cap rate across North Carolina markets is 4.5%, with median home prices averaging $307K and rents averaging $1,501/mo. Roanoke Rapids leads with a 9.7% cap rate at a $100K median price. North Carolina's low average property tax rate of 0.78% gives investors a significant cash flow advantage.

4.5%
Avg Cap Rate
$307K
Avg Price
$1,501/mo
Avg Rent
36
Cities Tracked

North Carolina Rental Market Analysis

North Carolina offers 36 investable rental markets tracked by CapRateCity. The state average cap rate of 4.5% is above the 3.81% national average, making North Carolina an attractive state for cash flow investors. No cities pass the 1% rule at median prices, so value-add strategies are essential.

Prices and rents: North Carolina home prices average $307K, which is 8% below the national average of $333K. Rents average $1,501/mo.

Taxes and costs: Property taxes average 0.78% across North Carolina, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $916 per year to NOI on an average-priced property. Asheville has the lowest rate at 0.64%.Vacancy averages 5.3%, tighter than the national average — favorable for landlords.

Growth outlook: Population growth across North Carolina averages 1.50% per year, led by Cary at 2.4%. Home values are appreciating at 3.2% annually on average. Strong population growth is driving housing demand and supporting both rent increases and price appreciation across the state.

Bottom line: North Carolina offers moderate opportunities for rental investors. The best deals are in cities at the top of the ranking — use the calculators on each city page to model specific properties.

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How North Carolina Compares to National Averages

Metric
North Carolina
National Avg
Avg Cap Rate
4.5%
3.8%
Avg Home Price
$307K
$333K
Avg Rent
$1,501/mo
$1,524/mo
Property Tax
0.78%
1.08%
Vacancy Rate
5.3%
5.6%
Pop. Growth
1.50%/yr
0.92%/yr

North Carolina Cities by Cap Rate Tier

Above 8% (1)7% – 8% (2)5% – 6% (7)4% – 5% (12)3% – 4% (8)Below 3% (6)

All 36 North Carolina Cities Ranked

1
Roanoke Rapids, NC9.7% cap rate
$100K median$990/mo rent0.78% tax1.5% growth
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2
Lumberton, NC7.6% cap rate
$130K median$1,050/mo rent0.78% tax1.5% growth
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3
Goldsboro, NC7.2% cap rate
$180K median$1,390/mo rent0.78% tax1.5% growth
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4
Rocky Mount, NC5.7% cap rate
$195K median$1,250/mo rent0.78% tax1.5% growth
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5
Wilson, NC5.5% cap rate
$220K median$1,380/mo rent0.78% tax1.5% growth
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6
Kinston, NC5.5% cap rate
$150K median$940/mo rent0.78% tax1.5% growth
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7
New Bern, NC5.3% cap rate
$255K median$1,550/mo rent0.78% tax1.5% growth
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8
Henderson, NC5.3% cap rate
$180K median$1,090/mo rent0.78% tax1.5% growth
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9
Sanford, NC5.2% cap rate
$290K median$1,720/mo rent0.78% tax1.5% growth
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10
Shelby, NC5.1% cap rate
$210K median$1,230/mo rent0.78% tax1.5% growth
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11
Marion, NC5.0% cap rate
$250K median$1,440/mo rent0.78% tax1.5% growth
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12
Elizabeth City, NC4.9% cap rate
$260K median$1,490/mo rent0.78% tax1.5% growth
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13
Fayetteville, NC4.9% cap rate
$255K median$1,480/mo rent0.79% tax0.8% growth
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14
Greenville, NC4.9% cap rate
$240K median$1,360/mo rent0.78% tax1.5% growth
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15
Winston, NC4.6% cap rate
$275K median$1,490/mo rent0.78% tax1.5% growth
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16
Greensboro, NC4.5% cap rate
$260K median$1,410/mo rent0.82% tax0.9% growth
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17
Winston-Salem, NC4.5% cap rate
$275K median$1,490/mo rent0.81% tax0.7% growth
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18
Hickory, NC4.5% cap rate
$260K median$1,390/mo rent0.78% tax1.5% growth
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19
High Point, NC4.5% cap rate
$260K median$1,410/mo rent0.82% tax0.6% growth
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20
Forest City, NC4.3% cap rate
$210K median$1,080/mo rent0.78% tax1.5% growth
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21
Jacksonville, NC4.2% cap rate
$285K median$1,480/mo rent0.78% tax1.2% growth
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22
Albemarle, NC4.1% cap rate
$300K median$1,510/mo rent0.78% tax1.5% growth
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23
Burlington, NC3.8% cap rate
$290K median$1,380/mo rent0.78% tax1.5% growth
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24
Concord, NC3.5% cap rate
$385K median$1,720/mo rent0.8% tax2% growth
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25
Charlotte, NC3.5% cap rate
$385K median$1,720/mo rent0.83% tax2.3% growth
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26
Asheville, NC3.4% cap rate
$415K median$1,760/mo rent0.64% tax1.5% growth
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27
Pinehurst, NC3.4% cap rate
$410K median$1,790/mo rent0.78% tax1.5% growth
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28
Brevard, NC3.3% cap rate
$465K median$1,990/mo rent0.78% tax1.5% growth
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29
Kill Devil Hills, NC3.1% cap rate
$590K median$2,430/mo rent0.78% tax1.5% growth
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30
Durham, NC3.1% cap rate
$405K median$1,650/mo rent0.8% tax1.8% growth
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31
Morehead City, NC3.0% cap rate
$465K median$1,870/mo rent0.78% tax1.5% growth
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32
Wilmington, NC2.9% cap rate
$435K median$1,690/mo rent0.76% tax1.8% growth
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33
Cary, NC2.9% cap rate
$430K median$1,650/mo rent0.77% tax2.4% growth
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34
Raleigh, NC2.8% cap rate
$430K median$1,650/mo rent0.78% tax2.1% growth
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35
Boone, NC2.8% cap rate
$490K median$1,880/mo rent0.78% tax1.5% growth
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36
Cullowhee, NC2.0% cap rate
$400K median$1,250/mo rent0.78% tax1.5% growth
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Other South States

Mississippi (9 cities · 6.3% avg)Louisiana (13 cities · 5.9% avg)West Virginia (10 cities · 5.9% avg)Alabama (18 cities · 5.7% avg)Oklahoma (18 cities · 5.7% avg)Georgia (26 cities · 5.0% avg)

Frequently Asked Questions

Is North Carolina a good state for rental property investing?
North Carolina has an average cap rate of 4.5% across 36 cities, which is above the national average of 3.81%. The best-performing city is Roanoke Rapids at 9.7%. Average home prices of $307K offer affordable entry points. Property taxes at 0.78% are investor-friendly.
What is the best city to buy rental property in North Carolina?
Roanoke Rapids leads North Carolina with a 9.7% cap rate, $100K median price, and $990/mo rent. The best city depends on your strategy — cash flow investors should look at the top of this ranking, while growth-focused investors may prefer Cary (2.4% population growth). Use the calculators on each city page to model specific deals.
What are property taxes like in North Carolina?
Property taxes in North Carolina average 0.78%, which is below the 1.08% national average. The lowest rate is in Asheville at 0.64%. On an average-priced home of $307K, annual taxes are approximately $2,394.
How many North Carolina cities pass the 1% rule?
0 of 36 North Carolina cities (0%) pass the 1% rule at median prices. None pass at median prices, meaning investors should target below-median properties or use value-add strategies to improve returns. The 1% rule says monthly rent should be at least 1% of purchase price.

Explore More

Highest Cap Rate Cities →Best Cash Flow Cities →Fastest Growing Markets →Lowest Property Tax Cities →Best Southern Markets →
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