Cap Rate in Salt Lake City, UT

2026 Market Overview for Real Estate Investors

Avg Cap Rate

5.4%

#35 of 50 markets

Median Home Price

$420,000

Purchase price

Median Monthly Rent

$1,650

$19,800/yr gross

Rent-to-Price Ratio

0.39%

Below 1% rule

Cap Rate Rating

Moderate

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

Market Snapshot

Population	200,133
5-Year Population Growth	+5.0%
Median Household Income	$62,000
Vacancy Rate	4.5%
Property Tax Rate	0.58%($2,436/yr)

Investor Takeaway

Salt Lake City has a young, growing population with a tech corridor driving job growth. Tight vacancy and low property taxes offset the higher purchase prices. Best for long-term appreciation investors.

Quick Math

Estimated annual numbers for a median-priced property in Salt Lake City, UT before financing:

Annual Gross Rent$19,800

Less Vacancy (4.5%)($891)

Less Property Tax (0.58%)($2,436)

Less Est. Insurance + Maintenance($8,400)

Estimated NOI$8,073

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.