| Scenario | Purchase price | Monthly cash flow | Cap rate | Cash-on-cash |
|---|---|---|---|---|
75% of median value-add or distressed | $495,276 | -$1,128/mo | 3.6% | -11.9% |
Median typical MLS deal | $660,368 | -$1,993/mo | 2.7% | -15.8% |
125% of median newer / premium | $825,460 | -$2,859/mo | 2.1% | -18.1% |
Historical data from Zillow ZHVI/ZORI
* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.
Based on 4.10% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.
Based on 3.8% YoY price growth. Moderate growth (3-8%) scores highest.
Population data not available.
Based on price relative to estimated local incomes.
Scores are calculated using real Zillow home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. Markets with missing rent data use estimated values based on regional averages.
Essex County in New Jersey scores 45/100, ranking #0 of 0 US counties (top 50%). At 20% down and current rates, a median-priced rental loses about $1993/month; the 4.10% gross rent-to-price ratio doesn't survive debt service. The thesis here is appreciation, value-add, house hacking, or all-cash.
Use our investment calculators to run detailed numbers on specific properties.