Cap rates 4.2–5.0% · Median price $400,000 · Median rent $1,900/mo · Population 470K
Raleigh is part of the Research Triangle (with Durham and Chapel Hill), home to major universities and one of the fastest-growing tech corridors in the US. Strong appreciation and improving cash flow fundamentals.
Here's what the numbers look like on a typical Raleigh rental at current market rates (20% down, 7.5% rate, standard expenses):
| Metric | As-Is (Current Rents) | Stabilized (Market Rents) |
|---|---|---|
| Purchase Price | $400,000 | $400,000 |
| Down Payment (20%) | $80,000 | $80,000 |
| Monthly Rent | $1,710 | $1,900 |
| Monthly Mortgage | $2,237 | $2,237 |
| Monthly OpEx (est 35%) | $598 | $665 |
| Est. Monthly Cash Flow | $-1,126/mo | $-1,002/mo |
| Cap Rate | 3.3% | 3.7% |
* Estimates only. Uses 20% down, 7.5% rate, 30yr term, 35% expense ratio, 5% vacancy. Run your own numbers with the calculator below.
Best for cash flow: Focus on workforce housing in established neighborhoods with strong employer anchors. Avoid chasing the highest raw yield numbers — the 10% cap rate in a declining neighborhood often means vacancy and management headaches that destroy returns.
Best for appreciation: Target neighborhoods within 2 miles of job centers, universities, or transit that are in the early stages of gentrification. Look for the coffee shop / yoga studio signal — amenities follow renters, and renters follow amenities.
Best for STR: Tourism-driven markets near {name}'s key attractions offer 2–3× LTR revenue but require professional management and local regulatory compliance.
DSCR Loans: Most Raleigh properties qualify for DSCR financing with a 1.0+ ratio. Use our DSCR Calculator to check qualification before making an offer.