CalculatorTennessee
Cap rate calculator — Tennessee
Tennessee investors frequently compare urban core deals with suburban cash flow. Default rent inputs are drawn from HUD FMR data—keep expense lines realistic for your property age and local landlord norms. Same math as the national Cap rate calculator; numbers are educational—not lender instructions.
Frequently asked questions
- How do you calculate cap rate on a rental property?
- Cap rate is annual NOI divided by purchase price. NOI is effective gross income after vacancy minus operating expenses like taxes, insurance, and recurring costs.
- What is a good cap rate?
- A good cap rate depends on market risk, asset quality, and growth expectations. Many investors compare cap rate against local comps, financing terms, and target return hurdles.
- Can I save cap rate calculator results?
- This calculator does not save your session. Use a free Veld account to save deals in the deal analyzer and track portfolio assumptions over time.
- What cap rate benchmark should I use in Tennessee?
- Recent residential cap rates in Tennessee are often near 5.8%, but deal quality and neighborhood risk can move that range. Underwrite with your actual 0.46% effective property tax and insurance quotes to avoid overstating NOI.
Real estate investing in Tennessee
Real estate investing in Tennessee
No state income tax does not remove property tax, insurance, or maintenance from your rental math. Enter those costs explicitly in your scenario.
- Typical 2BR rent
- ~$1,150/mo
- Effective property tax
- ~0.46% of home value
- State income tax
- No state income tax
- Typical cap rate
- ~5.8%
Rent: HUD FMR 2025 · Property tax: Tax Foundation 2022 · Adjust all calculator inputs to match your specific deal.
Other calculators for Tennessee: BRRRR Calculator · STR vs LTR Calculator. All calculators · Investment property calculator