Cash Flow Investing in Sacramento, CA
Data-driven cash flow analysis for Sacramento, CA — score breakdown, key investment metrics, and how it compares to other markets.
Last updated: May 2026
Score Breakdown
Key Metrics for Cash Flow
Cap Rate
4.7%
Moderate
Rent-to-Price
0.41%
Below 1% rule
Vacancy Rate
4.3%
Very tight
Property Tax
0.75%
Very low
Cash Flow Investment Thesis
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.
How Sacramento Compares
| Rank | City | Cash Flow Score | Cap Rate | Median Price |
|---|---|---|---|---|
| #14 | Minneapolis, MN | 4.8 | 6.1% | $295,000 |
| #15 | Kansas City, MO | 4.6 | 7.5% | $195,000 |
| #16 | Salt Lake City, UT | 4.6 | 5.4% | $420,000 |
| #17 | Boise, ID | 4.6 | 4.5% | $420,000 |
| #18 | Sacramento, CA | 4.6 | 4.7% | $450,000 |
| #19 | Cincinnati, OH | 4.5 | 7.0% | $195,000 |
| #20 | Columbus, OH | 4.4 | 6.8% | $240,000 |
Showing markets ranked near Sacramento for this strategy.
Quick Math: Estimated Annual Return
Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.
Frequently Asked Questions
What is the cash flow score for Sacramento, CA?
Sacramento, CA scores 4.6 out of 10 on our cash flow score, ranking #18 out of 52 markets we track. Weighted composite: rent-to-price ratio (30%), cap rate (30%), low vacancy (20%), low property taxes (20%). Scale 0–10.
Is Sacramento a good city for cash flow investing?
Sacramento, CA ranks #18 for cash flow investing — a solid mid-tier market with a score of 4.6/10. The median home price is $450,000 with a 4.7% average cap rate.
What is the average cap rate in Sacramento?
The average cap rate in Sacramento, CA is 4.7%. The median home price is $450,000 with a median monthly rent of $1,850, resulting in a rent-to-price ratio of 0.41%.
What are the property taxes in Sacramento?
The effective property tax rate in Sacramento, CA is 0.75%. On a $450,000 property, that translates to approximately $3,375 per year in property taxes.
How does Sacramento compare to other cash flow markets?
Among our 52 tracked markets, Sacramento, CA ranks #18 for cash flow investing. It falls in the middle of the pack for this strategy.
Does Sacramento meet the 1% rule?
Sacramento, CA has a rent-to-price ratio of 0.41%, which falls significantly below the 1% rule. However, the 1% rule is a rough guideline — individual deals can still cash flow well in this market.
Run Your Own Numbers for Sacramento
Use our free calculators pre-filled with Sacramento, CA market data, or adjust the numbers for your specific deal.
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