Cap rates 5.5–6.5% · Median price $320,000 · Median rent $1,500/mo · Population 220K
Spokane is Eastern Washington's economic center with no state income tax, no rent control, a large military base (Fairchild AFB), and Washington State University just 90 miles away in Pullman driving regional student demand.
Here's what the numbers look like on a typical Spokane rental at current market rates (20% down, 7.5% rate, standard expenses):
| Metric | As-Is (Current Rents) | Stabilized (Market Rents) |
|---|---|---|
| Purchase Price | $320,000 | $320,000 |
| Down Payment (20%) | $64,000 | $64,000 |
| Monthly Rent | $1,350 | $1,500 |
| Monthly Mortgage | $1,790 | $1,790 |
| Monthly OpEx (est 35%) | $472 | $525 |
| Est. Monthly Cash Flow | $-912/mo | $-815/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 Spokane properties qualify for DSCR financing with a 1.0+ ratio. Use our DSCR Calculator to check qualification before making an offer.