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California Cap Rate Calculator

Calculate cap rates using California market data. Property tax, insurance, vacancy rates, and other defaults are pre-filled with current California averages. Net Operating Income ÷ Property Price

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Property Details

Operating Expenses(California defaults)

Total Annual Expenses$19,734

California Market Context

Avg Cap Rate

4.2%

Median Price

$833K

Property Tax

0.69%

Vacancy Rate

4.8%

Local Factors

  • -Prop 13 caps property tax increases at 2% per year, benefiting long-term holders
  • -Strict rent control laws in major cities (LA, SF, Oakland) limit rent increases
  • -Wildfire risk is driving insurance costs up dramatically; some areas are becoming uninsurable

Sources

World Population Review – Median Home PriceFL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance RatesiPropertyManagement – Vacancy Rates

Cap Rate

1.4%

Low
Net Operating Income$11,694
Gross Income$31,428
Total Expenses$19,734
California Avg Cap Rate4.2%
CAP RATE1.4%
NOI$11,694
Property Tax$5,748
Insurance$1,633
Maintenance$8,330
Management$2,514
Vacancy$1,509

What does this mean?

A cap rate below 4% is typical for premium locations with lower risk but limited cash flow. Common in Class A properties in major metros.

Keep running the numbers

One calculator rarely tells the whole story.

Cap rate tells you the return without financing. Now see what happens when you add a mortgage with California rates.

Cash on Cash Return

Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.

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NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

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Gross Rent Multiplier

Quickly screen and compare rental properties by how many years of gross income cover the purchase price.

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