Wilmington, NC Cap Rate: 2.87% — Rental Property Analysis
Wilmington is a higher-priced market in the South with a smaller market with 125,948 residents. At a 2.87% estimated cap rate, this is a appreciation-focused market where rents of $1,690/mo lag behind home prices. With a median home price of $435,000 and steady population growth supports long-term rental demand, Wilmington is primarily an appreciation play that requires creative strategies to generate positive cash flow.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Challenging for pure cash flow
Based on $435,000 median price and $1,690/mo median rent
Est. Cap Rate
2.87%
1% Rule
0.39%
Fails
GRM
21.4x
Price / Income
8.2x
Market Data
Median Home Price$435,000
Median Monthly Rent$1,690
Property Tax Rate0.76%
Population125,948
Population Growth1.8% / yr
Median Household Income$52,800
Vacancy Rate5%
Annual Appreciation3.7%
2026 Market Update: Wilmington
Wilmington's 0.4% rent-to-price ratio is well below the 1% rule. At median prices of $435,000, the $1,690/mo rent produces only $1,040/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 ($87K at 7%) would result in approximately $-1,274/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 21.4x gross rent multiplier and 5% vacancy rate position Wilmington as a growth-dependent market. With annual appreciation at 3.7%, total returns (cash flow + equity growth) run approximately 6.6% before financing leverage.
Cap Rate Calculator — Wilmington
Pre-filled with Wilmington medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.76% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.43%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,566
net operating income
Gross Rent Multiplier
21.4x
High (>15)
1% Rule
0.39%
✗ Fails
Monthly Cash Flow
$881
before debt service
Annual Breakdown
Gross Rental Income$20,280
Less Vacancy−$1,014
Effective Income$19,266
Less Operating Expenses−$8,700
Net Operating Income$10,566
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Factor in financing to see your actual return on invested capital in Wilmington.
$
$108,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.30%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$121,800
$108,750 down + $13,050 closing
Monthly Mortgage
$2,127
on $326K loan
Monthly Cash Flow
$-1,147
after all expenses
Annual Cash Flow
$-13,763
before taxes
Cash Flow Breakdown
Monthly Rent$1,690
Less Expenses−$710
Less Mortgage−$2,127
Monthly Cash Flow$-1,147
Is Wilmington a Good Place to Invest in Rental Property?
Wilmington, NC has a population of 125,948 and has been growing at 1.8% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $435,000 paired with median rents of $1,690/mo produces an estimated cap rate of 2.87%.
Property taxes at 0.76% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 8.2x, homes cost about 8.2 times the local median income of $52,800. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.7% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.
Bottom line: At current median prices, Wilmington 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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