Rental Property for Massachusetts (2026)
Massachusetts (MA) Key Facts
Average Cap Rate
4.5%
Average 1 B R Rent
$2,100
Rent to Price Ratio
4.42%
Landlord Friendly
No (Tenant-friendly)
Average Property Tax Rate
1.23%
How This Calculator Works in Massachusetts
This rental property calculator helps you analyze potential investment properties in Massachusetts by estimating cash flow, cap rate, and return on investment. It is pre-loaded with Massachusetts's average rent and property values so you can quickly evaluate whether a property meets your investment criteria. Adjust the rental income, expenses, and financing terms to match a specific property.
Massachusetts Overview
Massachusetts offers a cap rate of 4.5% with median home prices of $570,000 and average 1BR rents of $2,100/month. Massachusetts leans tenant-friendly, with stronger renter protections and longer eviction timelines. Factor this into your risk and vacancy assumptions. There is no statewide rent control, allowing market-rate adjustments at lease renewal.
How Massachusetts Compares
Massachusetts's cap rate of 4.5% is lower than most neighboring states, reflecting higher property values. Connecticut has a cap rate of 5.5% and Rhode Island has a cap rate of 5.5%. Investors often compare multiple states to find the best risk-adjusted returns for their strategy.
| State | Top Rate | Notes |
|---|---|---|
| Connecticut | 5.5% | Average cap rate of 5.5% with median home price of $380,000 and average 1BR rent of $1,350. Moderate landlord-tenant regulations. |
| Rhode Island | 5.5% | Average cap rate of 5.5% with median home price of $420,000 and average 1BR rent of $1,400. Moderate landlord-tenant regulations. |
| New Hampshire | 5.5% | Average cap rate of 5.5% with median home price of $450,000 and average 1BR rent of $1,400. Moderate landlord-tenant regulations. |
Massachusetts has an average cap rate of 4.5%, which is below average nationally, reflecting higher property values relative to rents. The rent-to-price ratio of 4.42% helps investors gauge monthly cash flow potential relative to the property's value.
Tips for Massachusetts Residents
- 1The average cap rate in Massachusetts is 4.5%. This is in the moderate range nationally.
- 2Massachusetts leans tenant-friendly, with stronger renter protections and longer eviction timelines. Factor this into your risk and vacancy assumptions.
- 3Massachusetts does not have statewide rent control, allowing landlords to set and raise market-rate rents freely at lease renewal.
- 4Budget for operating expenses of 40-50% of gross rent in Massachusetts, covering property taxes (1.23%), insurance, maintenance (1-2% of property value/year), vacancy (5-8%), and property management (8-10% of rent if hiring a manager).
- 5Average 1BR rent in Massachusetts is $2,100/month against a median home price of $570,000. The rent-to-price ratio helps you quickly screen properties: higher ratios suggest better cash-flow potential.
Frequently Asked Questions
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