Cap rates 4.5–5.3% · Median price $450,000 · Median rent $1,900/mo · Population 200K
Salt Lake City combines outdoor lifestyle appeal, a booming tech sector (Silicon Slopes), no rent control, and Utah's exceptional landlord-friendly laws. Strong family demographics drive LTR demand.
Here's what the numbers look like on a typical Salt Lake City rental at current market rates (20% down, 7.5% rate, standard expenses):
| Metric | As-Is (Current Rents) | Stabilized (Market Rents) |
|---|---|---|
| Purchase Price | $450,000 | $450,000 |
| Down Payment (20%) | $90,000 | $90,000 |
| Monthly Rent | $1,710 | $1,900 |
| Monthly Mortgage | $2,517 | $2,517 |
| Monthly OpEx (est 35%) | $598 | $665 |
| Est. Monthly Cash Flow | $-1,406/mo | $-1,282/mo |
| Cap Rate | 3.0% | 3.3% |
* 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 Salt Lake City properties qualify for DSCR financing with a 1.0+ ratio. Use our DSCR Calculator to check qualification before making an offer.