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MarketsUtahVernal

Cap Rate Analysis: Vernal, UT

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

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $345,000 median price and $1,450/mo median rent
Est. Cap Rate
3.46%
1% Rule
0.42%
Fails
GRM
19.8x
Price / Income
6.2x

Market Data

Median Home Price$345,000
Median Monthly Rent$1,450
Property Tax Rate0.57%
Population50,000
Population Growth2% / yr
Median Household Income$55,575
Vacancy Rate4.3%
Annual Appreciation2.8%

Cap Rate Calculator — Vernal

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.57% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.95%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,172
net operating income
Gross Rent Multiplier
19.8x
High (>15)
1% Rule
0.42%
✗ Fails
Monthly Cash Flow
$848
before debt service
Annual Breakdown
Gross Rental Income$17,400
Less Vacancy−$748
Effective Income$16,652
Less Operating Expenses−$6,480
Net Operating Income$10,172
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Cash-on-Cash Return — Vernal

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

$
$86,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.51%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$96,600
$86,250 down + $10,350 closing
Monthly Mortgage
$1,687
on $259K loan
Monthly Cash Flow
$-846
after all expenses
Annual Cash Flow
$-10,150
before taxes
Cash Flow Breakdown
Monthly Rent$1,450
Less Expenses−$609
Less Mortgage−$1,687
Monthly Cash Flow$-846

Is Vernal a Good Place to Invest in Rental Property?

Vernal, UT has a population of 50,000 and has been growing at 2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $345,000 paired with median rents of $1,450/mo produces an estimated cap rate of 3.46%.

Property taxes at 0.57% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.3% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 6.2x, homes cost about 6.2 times the local median income of $55,575. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. 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: At current median prices, Vernal 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.

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