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Syracuse, NY Cap Rate: 4.70% — Rental Property Analysis

Syracuse is a mid-range market in the Northeast with a smaller market with 148,620 residents. At a 4.70% estimated cap rate, this is a moderate market where rents of $1,620/mo lag behind home prices. With a median home price of $250,000 and the population has been declining, which investors should factor into long-term projections, Syracuse 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

Moderate — source deals carefully
Based on $250,000 median price and $1,620/mo median rent
Est. Cap Rate
4.70%
1% Rule
0.65%
Fails
GRM
12.9x
Price / Income
6.5x

Market Data

Median Home Price$250,000
Median Monthly Rent$1,620
Property Tax Rate1.75%
Population148,620
Population Growth-0.2% / yr
Median Household Income$38,200
Vacancy Rate6.8%
Annual Appreciation2%

2026 Market Update: Syracuse

Syracuse's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $250,000, the $1,620/mo rent produces only $979/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 ($50K at 7%) would result in approximately $-351/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.

Property taxes consume 23% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Syracuse a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.

Cap Rate Calculator — Syracuse

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.75% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.70%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,238
net operating income
Gross Rent Multiplier
12.9x
Good (<15)
1% Rule
0.65%
✗ Fails
Monthly Cash Flow
$770
before debt service
Annual Breakdown
Gross Rental Income$19,440
Less Vacancy−$1,322
Effective Income$18,118
Less Operating Expenses−$8,880
Net Operating Income$9,238
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Cash-on-Cash Return — Syracuse

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

$
$62,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.84%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$70,000
$62,500 down + $7,500 closing
Monthly Mortgage
$1,222
on $188K loan
Monthly Cash Flow
$-282
after all expenses
Annual Cash Flow
$-3,388
before taxes
Cash Flow Breakdown
Monthly Rent$1,620
Less Expenses−$680
Less Mortgage−$1,222
Monthly Cash Flow$-282

Is Syracuse a Good Place to Invest in Rental Property?

Syracuse, NY has a population of 148,620 and has been growing at -0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $250,000 paired with median rents of $1,620/mo produces an estimated cap rate of 4.70%.

Property taxes at 1.75% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 6.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 6.5x, homes cost about 6.5 times the local median income of $38,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Syracuse presents moderate opportunities. Cap rates near 4.70% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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