Cap Rate in Sacramento, CA

2026 Market Overview for Real Estate Investors

Avg Cap Rate

4.7%

#42 of 50 markets

Median Home Price

$450,000

Purchase price

Median Monthly Rent

$1,850

$22,200/yr gross

Rent-to-Price Ratio

0.41%

Below 1% rule

Cap Rate Rating

Moderate

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

Market Snapshot

Population	524,943
5-Year Population Growth	+5.5%
Median Household Income	$65,000
Vacancy Rate	4.8%
Property Tax Rate	0.75%($3,375/yr)

Investor Takeaway

Sacramento benefits from Bay Area spillover migration and state government employment. More affordable than coastal California with stronger cap rates, though landlord regulations are strict.

Quick Math

Estimated annual numbers for a median-priced property in Sacramento, CA before financing:

Annual Gross Rent$22,200

Less Vacancy (4.8%)($1,066)

Less Property Tax (0.75%)($3,375)

Less Est. Insurance + Maintenance($9,000)

Estimated NOI$8,759

Implied Cap Rate1.9%

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