19 Oregon cities ranked by estimated cap rate. The average cap rate across Oregon markets is 2.7%, with median home prices averaging $438K and rents averaging $1,672/mo. Coos Bay leads with a 4.2% cap rate at a $340K median price. Property taxes average 0.94% across Oregon markets.
Oregon offers 19 investable rental markets tracked by CapRateCity. The state average cap rate of 2.7% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Oregon home prices average $438K, which is 31% above the national average of $333K. Rents average $1,672/mo. The most affordable entry point is Hermiston at $305K, while Coos Bay offers the highest cap rate at 4.2%.
Taxes and costs: Property taxes average 0.94% across Oregon, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $618 per year to NOI on an average-priced property. Bend has the lowest rate at 0.9%.Vacancy averages 4.7%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Oregon averages 0.99% per year, led by Bend at 2.5%. Home values are appreciating at 2.5% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Oregon is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.