Weatherford, OK Cap Rate 5.55%
Weatherford is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 5.55% estimated cap rate, this is a solid market where rents of $1,120/mo lag behind home prices. With a median home price of $175,000 and steady population growth supports long-term rental demand, Weatherford stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Weatherford
Weatherford's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $175,000, the $1,120/mo rent produces only $810/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 ($35K at 7%) would result in approximately $-121/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.
The 13.0x gross rent multiplier and 5.8% vacancy rate position Weatherford as a value-oriented market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 8.1% before financing leverage.
Deal Modeling & Scenarios for Weatherford
All figures below are computed from Weatherford's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.88% effective rate on the $175,000 median price, the annual tax bill is $1,540 — that's near national average (-17% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Weatherford continues appreciating at 2.5%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $175K | $1,120 | 5.6% |
| Year 1 | $179K | $1,154 | 5.6% |
| Year 2 | $184K | $1,188 | 5.6% |
| Year 3 | $188K | $1,224 | 5.6% |
| Year 4 | $193K | $1,261 | 5.7% |
| Year 5 | $198K | $1,298 | 5.7% |
Three Financing Scenarios
Same median-priced Weatherford property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $175K | $810 | $9,720 | 5.6% |
| 20% down conventional @ 7% | $40K | $-121 | $-1,452 | -3.6% |
| 25% down DSCR @ 8.5% | $51K | $-199 | $-2,391 | -4.7% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $131K | $952 | $7,254 | 5.5% | $604 |
| At median | $175K | $1,120 | $8,270 | 4.7% | $689 |
| Above median (~125% price) | $219K | $1,288 | $9,287 | 4.2% | $774 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Weatherford's historical appreciation rate of 2.5%:
On a $35K down payment, that's a 75.0% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Weatherford
Automated checks against the underlying data — surface only the risks that actually apply to Weatherford, not generic boilerplate:
Cap Rate Calculator — Weatherford
Pre-filled with Weatherford medians. Adjust to match a specific property.
Cash-on-Cash Return — Weatherford
Factor in financing to see your actual return on invested capital in Weatherford.
Is Weatherford a Good Place to Invest in Rental Property?
Weatherford, OK has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $175,000 paired with median rents of $1,120/mo produces an estimated cap rate of 5.55%.
Property taxes at 0.88% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.1x, homes cost about 3.1 times the local median income of $56,350. 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 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Weatherford presents moderate opportunities. Cap rates near 5.55% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.