Cap Rate in Portland, OR

2026 Market Overview for Real Estate Investors

Avg Cap Rate

4.2%

#46 of 50 markets

Median Home Price

$480,000

Purchase price

Median Monthly Rent

$1,750

$21,000/yr gross

Rent-to-Price Ratio

0.36%

Below 1% rule

Cap Rate Rating

Moderate

Typical for stable markets with moderate growth potential. Balanced risk-return profile.

Market Snapshot

Population	641,162
5-Year Population Growth	+2.0%
Median Household Income	$71,000
Vacancy Rate	5.8%
Property Tax Rate	1.07%($5,136/yr)

Investor Takeaway

Portland rent control and tenant protections make it one of the most landlord-unfriendly markets in the US. Strong tenant quality but regulatory risk is significant for small investors.

Quick Math

Estimated annual numbers for a median-priced property in Portland, OR before financing:

Annual Gross Rent$21,000

Less Vacancy (5.8%)($1,218)

Less Property Tax (1.07%)($5,136)

Less Est. Insurance + Maintenance($9,600)

Estimated NOI$5,046

Implied Cap Rate1.1%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.