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Cap Rate Analysis: Virginia Beach, VA

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

Challenging for pure cash flow
Based on $340,000 median price and $1,580/mo median rent
Est. Cap Rate
3.73%
1% Rule
0.46%
Fails
GRM
17.9x
Price / Income
4.5x

Market Data

Median Home Price$340,000
Median Monthly Rent$1,580
Property Tax Rate0.79%
Population460,490
Population Growth0.8% / yr
Median Household Income$76,400
Vacancy Rate4.6%
Annual Appreciation3.2%

Cap Rate Calculator — Virginia Beach

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.79% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.13%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,636
net operating income
Gross Rent Multiplier
17.9x
High (>15)
1% Rule
0.46%
✗ Fails
Monthly Cash Flow
$886
before debt service
Annual Breakdown
Gross Rental Income$18,960
Less Vacancy−$872
Effective Income$18,088
Less Operating Expenses−$7,452
Net Operating Income$10,636

Cash-on-Cash Return — Virginia Beach

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

$
$85,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.41%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$95,200
$85,000 down + $10,200 closing
Monthly Mortgage
$1,662
on $255K loan
Monthly Cash Flow
$-746
after all expenses
Annual Cash Flow
$-8,957
before taxes
Cash Flow Breakdown
Monthly Rent$1,580
Less Expenses−$664
Less Mortgage−$1,662
Monthly Cash Flow$-746

Is Virginia Beach a Good Place to Invest in Rental Property?

Virginia Beach, VA has a population of 460,490 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 $340,000 paired with median rents of $1,580/mo produces an estimated cap rate of 3.73%.

Property taxes at 0.79% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.6% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 4.5x, homes cost about 4.5 times the local median income of $76,400. 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 3.2% 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, Virginia Beach 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 Virginia Beach
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