8 Utah cities ranked by estimated cap rate. The average cap rate across Utah markets is 2.4%, with median home prices averaging $559K and rents averaging $1,734/mo. Vernal leads with a 3.5% cap rate at a $345K median price. Utah's low average property tax rate of 0.57% gives investors a significant cash flow advantage.
Utah offers 8 investable rental markets tracked by CapRateCity. The state average cap rate of 2.4% 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: Utah home prices average $559K, which is 68% above the national average of $333K. Rents average $1,734/mo.
Taxes and costs: Property taxes average 0.57% across Utah, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $2,853 per year to NOI on an average-priced property. St. George has the lowest rate at 0.55%.Vacancy averages 4.3%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Utah averages 1.99% per year, led by St. George at 3.5%. Home values are appreciating at 2.8% annually on average. Strong population growth is driving housing demand and supporting both rent increases and price appreciation across the state.
Bottom line: Utah 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.