Susanville, CA Cap Rate 5.07%
Susanville is a budget-friendly market in the West with a small but investable metro of 50,000. At a 5.07% estimated cap rate, this is a moderate market where rents of $1,310/mo lag behind home prices. With a median home price of $225,000 and steady population growth supports long-term rental demand, Susanville 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
Market Data
2026 Market Update: Susanville
Susanville's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $225,000, the $1,310/mo rent produces only $951/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 ($45K at 7%) would result in approximately $-246/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 14.3x gross rent multiplier and 5.2% vacancy rate position Susanville as a balanced market. With annual appreciation at 2.8%, total returns (cash flow + equity growth) run approximately 7.9% before financing leverage.
Deal Modeling & Scenarios for Susanville
All figures below are computed from Susanville's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.75% effective rate on the $225,000 median price, the annual tax bill is $1,688 — that's below national average (-29% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Susanville continues appreciating at 2.8%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $225K | $1,310 | 5.1% |
| Year 1 | $231K | $1,349 | 5.1% |
| Year 2 | $238K | $1,390 | 5.1% |
| Year 3 | $244K | $1,431 | 5.1% |
| Year 4 | $251K | $1,474 | 5.1% |
| Year 5 | $258K | $1,519 | 5.1% |
Three Financing Scenarios
Same median-priced Susanville property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $225K | $951 | $11,415 | 5.1% |
| 20% down conventional @ 7% | $52K | $-246 | $-2,949 | -5.7% |
| 25% down DSCR @ 8.5% | $65K | $-346 | $-4,157 | -6.4% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $169K | $1,114 | $8,593 | 5.1% | $716 |
| At median | $225K | $1,310 | $9,800 | 4.4% | $817 |
| Above median (~125% price) | $281K | $1,506 | $11,006 | 3.9% | $917 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Susanville's historical appreciation rate of 2.8%:
On a $45K down payment, that's a 71.3% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Susanville
Automated checks against the underlying data — surface only the risks that actually apply to Susanville, not generic boilerplate:
Cap Rate Calculator — Susanville
Pre-filled with Susanville medians. Adjust to match a specific property.
Cash-on-Cash Return — Susanville
Factor in financing to see your actual return on invested capital in Susanville.
Is Susanville a Good Place to Invest in Rental Property?
Susanville, CA has a population of 50,000 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 $225,000 paired with median rents of $1,310/mo produces an estimated cap rate of 5.07%.
Property taxes at 0.75% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.7x, homes cost about 3.7 times the local median income of $60,018. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. 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: Susanville presents moderate opportunities. Cap rates near 5.07% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.