Cap Rate for Idaho (2026)
Idaho (ID) Key Facts
Average Cap Rate
5.5%
Market Type
Balanced market
Median Property Value
$440,000
Average Annual Rent (1 B R)
$13,200
Estimated N O I
$7,920
How This Calculator Works in Idaho
This cap rate calculator helps you evaluate the return potential of investment properties in Idaho. Enter the property's value, annual rental income, and operating expenses to instantly calculate the cap rate. Compare your result against Idaho's average of 5.5% to see how a specific property stacks up. The calculator is pre-loaded with Idaho averages for quick estimates.
Idaho Overview
The average cap rate in Idaho is 5.5%, with median property values of $300,000 and average 1BR rents of $1,200/month. Idaho is landlord-friendly, which reduces regulatory risk for investors. Without statewide rent control, Idaho allows market-rate rent adjustments that can improve cap rates over time.
How Idaho Compares
Idaho's cap rate of 5.5% is near the national mid-range. Neighboring Montana has a cap rate of 5.5% and Washington is at 4.8%. Investors often diversify across states with different cap rate profiles to balance cash flow and appreciation.
| State | Top Rate | Notes |
|---|---|---|
| Montana | 5.5% | Average cap rate of 5.5% with median property value of $450,000. Balanced market. |
| Washington | 4.8% | Average cap rate of 4.8% with median property value of $570,000. Balanced market. |
| Oregon | 5% | Average cap rate of 5% with median property value of $480,000. Balanced market. |
Idaho's average cap rate of 5.5% places it in balanced market territory. Nationally, cap rates range from about 3.5% in expensive coastal markets to 8% or more in affordable Midwest and Southern states. Higher cap rates indicate better cash-flow returns, while lower cap rates often come with stronger appreciation potential.
Tips for Idaho Residents
- 1The average cap rate in Idaho is 5.5%. Cap rate = net operating income / property value. This moderate cap rate in Idaho offers a balance of cash flow and potential appreciation.
- 2When calculating cap rate in Idaho, deduct all operating expenses: property taxes (1.1%), insurance, maintenance, vacancy, and management fees. Do not include mortgage payments—cap rate measures unleveraged return.
- 3Idaho has no rent control, meaning you can raise rents to market rates and improve your cap rate as the local rental market appreciates.
- 4Compare cap rates across Idaho neighborhoods. Urban cores often have lower cap rates (higher prices, lower yields) while suburban and secondary markets may offer better returns. A 1-2% cap rate difference on a $300,000 property changes annual net income by $3,000-$6,000.
- 5Idaho's landlord-friendly environment reduces operational risk, which is already reflected in cap rates. Lower regulatory risk means investors may accept slightly lower cap rates.
Frequently Asked Questions
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