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Massachusetts Cap Rate Calculator

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

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Property Details

Operating Expenses(Massachusetts defaults)

Total Annual Expenses$17,509

Massachusetts Market Context

Avg Cap Rate

4.5%

Median Price

$615K

Property Tax

0.95%

Vacancy Rate

3.2%

Local Factors

  • -Very low vacancy rates driven by Boston's education and biotech employment centers
  • -Strict tenant protection laws and potential rent stabilization efforts
  • -High barrier to entry but strong appreciation potential in eastern MA

Sources

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

Cap Rate

2.7%

Low
Net Operating Income$16,583
Gross Income$34,092
Total Expenses$17,509
Massachusetts Avg Cap Rate4.5%
CAP RATE2.7%
NOI$16,583
Property Tax$5,843
Insurance$1,698
Maintenance$6,150
Management$2,727
Vacancy$1,091

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 Massachusetts 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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