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Cap Rate Analysis: Winston-Salem, NC

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

Moderate — source deals carefully
Based on $215,000 median price and $1,150/mo median rent
Est. Cap Rate
4.42%
1% Rule
0.53%
Fails
GRM
15.6x
Price / Income
4.8x

Market Data

Median Home Price$215,000
Median Monthly Rent$1,150
Property Tax Rate0.81%
Population253,540
Population Growth0.7% / yr
Median Household Income$44,600
Vacancy Rate6%
Annual Appreciation2.8%

Cap Rate Calculator — Winston-Salem

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.81% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.67%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,884
net operating income
Gross Rent Multiplier
15.6x
High (>15)
1% Rule
0.53%
✗ Fails
Monthly Cash Flow
$657
before debt service
Annual Breakdown
Gross Rental Income$13,800
Less Vacancy−$828
Effective Income$12,972
Less Operating Expenses−$5,088
Net Operating Income$7,884

Cash-on-Cash Return — Winston-Salem

Factor in financing to see your actual return on invested capital in Winston-Salem.

$
$53,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.66%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$60,200
$53,750 down + $6,450 closing
Monthly Mortgage
$1,051
on $161K loan
Monthly Cash Flow
$-384
after all expenses
Annual Cash Flow
$-4,611
before taxes
Cash Flow Breakdown
Monthly Rent$1,150
Less Expenses−$483
Less Mortgage−$1,051
Monthly Cash Flow$-384

Is Winston-Salem a Good Place to Invest in Rental Property?

Winston-Salem, NC has a population of 253,540 and has been growing at 0.7% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $215,000 paired with median rents of $1,150/mo produces an estimated cap rate of 4.42%.

Property taxes at 0.81% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.8x, homes cost about 4.8 times the local median income of $44,600. This moderate ratio indicates a balanced rent-vs-buy market. 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: Winston-Salem presents moderate opportunities. Cap rates near 4.42% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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