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Cap Rate Analysis: Tacoma, WA

Investment metrics, interactive calculators, and data-driven analysis for Tacoma rental properties.

Challenging for pure cash flow
Based on $420,000 median price and $1,720/mo median rent
Est. Cap Rate
2.92%
1% Rule
0.41%
Fails
GRM
20.3x
Price / Income
7.2x

Market Data

Median Home Price$420,000
Median Monthly Rent$1,720
Property Tax Rate0.96%
Population221,776
Population Growth0.6% / yr
Median Household Income$58,200
Vacancy Rate4.8%
Annual Appreciation2.6%

Cap Rate Calculator — Tacoma

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.96% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.43%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,217
net operating income
Gross Rent Multiplier
20.3x
High (>15)
1% Rule
0.41%
✗ Fails
Monthly Cash Flow
$851
before debt service
Annual Breakdown
Gross Rental Income$20,640
Less Vacancy−$991
Effective Income$19,649
Less Operating Expenses−$9,432
Net Operating Income$10,217

Cash-on-Cash Return — Tacoma

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

$
$105,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.77%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$117,600
$105,000 down + $12,600 closing
Monthly Mortgage
$2,054
on $315K loan
Monthly Cash Flow
$-1,056
after all expenses
Annual Cash Flow
$-12,667
before taxes
Cash Flow Breakdown
Monthly Rent$1,720
Less Expenses−$722
Less Mortgage−$2,054
Monthly Cash Flow$-1,056

Is Tacoma a Good Place to Invest in Rental Property?

Tacoma, WA has a population of 221,776 and has been growing at 0.6% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $420,000 paired with median rents of $1,720/mo produces an estimated cap rate of 2.92%.

Property taxes at 0.96% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 7.2x, homes cost about 7.2 times the local median income of $58,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Tacoma is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

Run a BRRRR analysis for Tacoma
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