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Utica, NY Cap Rate: 4.42% — Rental Property Analysis

Utica is a budget-friendly market in the Northeast with a smaller market with 62,000 residents. At a 4.42% estimated cap rate, this is a moderate market where rents of $1,340/mo lag behind home prices. With a median home price of $215,000 and the population has been declining, which investors should factor into long-term projections, Utica 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 $215,000 median price and $1,340/mo median rent
Est. Cap Rate
4.42%
1% Rule
0.62%
Fails
GRM
13.4x
Price / Income
5.9x

Market Data

Median Home Price$215,000
Median Monthly Rent$1,340
Property Tax Rate1.74%
Population62,000
Population Growth-0.2% / yr
Median Household Income$36,200
Vacancy Rate7%
Annual Appreciation1.8%

2026 Market Update: Utica

Utica's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $215,000, the $1,340/mo rent produces only $791/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 ($43K at 7%) would result in approximately $-353/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 Utica a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.

Cap Rate Calculator — Utica

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.74% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.47%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,454
net operating income
Gross Rent Multiplier
13.4x
Good (<15)
1% Rule
0.62%
✗ Fails
Monthly Cash Flow
$621
before debt service
Annual Breakdown
Gross Rental Income$16,080
Less Vacancy−$1,126
Effective Income$14,954
Less Operating Expenses−$7,500
Net Operating Income$7,454
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Cash-on-Cash Return — Utica

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

$
$53,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.47%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$60,200
$53,750 down + $6,450 closing
Monthly Mortgage
$1,051
on $161K loan
Monthly Cash Flow
$-274
after all expenses
Annual Cash Flow
$-3,291
before taxes
Cash Flow Breakdown
Monthly Rent$1,340
Less Expenses−$563
Less Mortgage−$1,051
Monthly Cash Flow$-274

Is Utica a Good Place to Invest in Rental Property?

Utica, NY has a population of 62,000 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 $215,000 paired with median rents of $1,340/mo produces an estimated cap rate of 4.42%.

Property taxes at 1.74% 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 7% runs above average, which increases cash flow volatility and warrants conservative underwriting.

At a price-to-income ratio of 5.9x, homes cost about 5.9 times the local median income of $36,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 1.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Utica presents moderate opportunities. Cap rates near 4.42% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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