Cap Rate for Oregon (2026)

How This Calculator Works in Oregon

This cap rate calculator helps you evaluate the return potential of investment properties in Oregon. Enter the property's value, annual rental income, and operating expenses to instantly calculate the cap rate. Compare your result against Oregon's average of 5% to see how a specific property stacks up. The calculator is pre-loaded with Oregon averages for quick estimates.

Oregon Overview

The average cap rate in Oregon is 5%, with median property values of $300,000 and average 1BR rents of $1,200/month. Oregon is tenant-friendly, requiring careful due diligence on local regulations. Rent control laws in Oregon can compress cap rates by limiting income growth on qualifying properties.

How Oregon Compares

Oregon's cap rate of 5% is near the national mid-range. Neighboring Washington has a cap rate of 4.8% and California is at 4%. Investors often diversify across states with different cap rate profiles to balance cash flow and appreciation.

Oregon's average cap rate of 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 Oregon Residents

• 1The average cap rate in Oregon is 5%. Cap rate = net operating income / property value. This moderate cap rate in Oregon offers a balance of cash flow and potential appreciation.
• 2When calculating cap rate in Oregon, deduct all operating expenses: property taxes (1.1%), insurance, maintenance, vacancy, and management fees. Do not include mortgage payments—cap rate measures unleveraged return.
• 3Rent control in Oregon limits income growth, which can compress cap rates over time. Model your projections using the regulated increase cap, not unrestricted market rent growth.
• 4Compare cap rates across Oregon 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.
• 5Oregon's tenant-friendly regulations increase operational complexity and risk. Investors should demand higher cap rates in Oregon to compensate for longer eviction timelines and potential rent restrictions.

Frequently Asked Questions