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Cap Rate Analysis: Wilmington, NC

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

Challenging for pure cash flow
Based on $340,000 median price and $1,520/mo median rent
Est. Cap Rate
3.54%
1% Rule
0.45%
Fails
GRM
18.6x
Price / Income
6.4x

Market Data

Median Home Price$340,000
Median Monthly Rent$1,520
Property Tax Rate0.76%
Population125,948
Population Growth1.8% / yr
Median Household Income$52,800
Vacancy Rate5%
Annual Appreciation3.7%

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
2.97%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,104
net operating income
Gross Rent Multiplier
18.6x
High (>15)
1% Rule
0.45%
✗ Fails
Monthly Cash Flow
$842
before debt service
Annual Breakdown
Gross Rental Income$18,240
Less Vacancy−$912
Effective Income$17,328
Less Operating Expenses−$7,224
Net Operating Income$10,104

Cash-on-Cash Return — Wilmington

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

$
$85,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.84%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
$-780
after all expenses
Annual Cash Flow
$-9,365
before taxes
Cash Flow Breakdown
Monthly Rent$1,520
Less Expenses−$638
Less Mortgage−$1,662
Monthly Cash Flow$-780

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 $340,000 paired with median rents of $1,520/mo produces an estimated cap rate of 3.54%.

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 6.4x, homes cost about 6.4 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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