Rental Property ROI Calculator
Analyze any investment property in seconds. Get cap rate, cash-on-cash return, monthly cash flow, and total ROI — including appreciation over your hold period.
Property
Rental Income
Parking, laundry, etc.
Expenses
Hold Period & Growth
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How We Calculate Rental ROI
This calculator gives you a complete picture of rental property returns — not just monthly cash flow, but total ROI including appreciation over your planned hold period.
Cap Rate measures the property's income return independent of financing. A cap rate above 5% is generally considered strong for residential rentals in 2026.
Cash-on-Cash Return measures actual cash income relative to cash invested. It accounts for your mortgage, making it a better measure of your personal return than cap rate.
The 1% Rule is a quick screen: monthly rent should be at least 1% of purchase price. It doesn't guarantee positive cash flow but filters out obvious losers.
Benchmark Returns (2026)
Key Rules of Thumb
| Market Type | Cap Rate Range | Cash-on-Cash | Notes |
|---|---|---|---|
| Primary (NYC, LA, SF, Boston) | 3–5% | 2–5% | Low cap, appreciation play |
| Secondary (Austin, Denver, Miami) | 4–6% | 4–7% | Balanced growth & income |
| Tertiary (Memphis, KC, Cleveland) | 6–10% | 7–12% | High income, slower growth |
| Sun Belt (Phoenix, Tampa, Atlanta) | 5–7% | 5–9% | Strong rent & pop growth |
| Midwest (Columbus, Indy, STL) | 6–9% | 6–11% | Affordable, steady demand |
| Mountain West (SLC, Boise) | 4–6% | 4–7% | High appreciation potential |
Benchmarks based on 2026 market data for single-family and small multifamily (2–4 unit) properties. Cap rates vary by property type, condition, and specific submarket. Always run property-specific analysis using the calculator above.
Full 14-category new home build cost for your zip code. See exactly what it costs to build a rental from the ground up vs buying existing.
- ✓ All 14 CSI divisions itemized
- ✓ Labor vs material split
- ✓ Zip-code adjusted pricing
- ✓ Instant PDF download
New construction and ADU rentals require permits that vary dramatically by state. Get every fee, timeline, and zoning requirement for your state.
- ✓ State-specific checklist
- ✓ ADU & rental unit rules
- ✓ Fee estimation worksheet
- ✓ Printable PDF
Builder quotes for rental properties vary 20–30%. Compare your bid against 2026 RSMeans data and know if you're getting a fair price.
- ✓ Market vs bid comparison
- ✓ Counter-offer range
- ✓ Copy-paste negotiation message
- ✓ Red flag detector
Get every fee, timeline, and zoning rule for your state — $9.99.
Know your build cost
before you break ground.
You've run the ROI numbers. Now get the exact construction cost for your rental — 14 categories, ZIP-adjusted, in 3 minutes.
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