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

Market

Browse calculators by state

Property Details

Property Price

Annual Gross Rental Income

Operating Expenses(Massachusetts defaults)

Total Annual Expenses$17,509

Property Tax(0.95% avg in MA)

Insurance($1,698 avg in MA)

Maintenance & Repairs

Management Fee(8% of rent)

Vacancy Rate($1,091/yr)

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 Price FL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance Rates iPropertyManagement – 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%

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.

Calculate

NOI

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

Calculate

Gross Rent Multiplier

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

Calculate