{"id":901,"date":"2026-08-18T00:36:20","date_gmt":"2026-08-18T04:36:20","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/"},"modified":"2026-09-24T00:20:18","modified_gmt":"2026-09-24T04:20:18","slug":"north-carolina-cap-rate","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/","title":{"rendered":"North Carolina Cap Rate by City: Best Deals (2026)"},"content":{"rendered":"<p><strong>North Carolina cap rates<\/strong> range from 3.5\u20134.5% in Raleigh to 5.5\u20137% in Greensboro \u2014 shaped by NC&#8217;s ultra-low 0.66% property tax that boosts NOI above most competing states. The tradeoff: insurance costs spiked to $3,000\/yr after consecutive rate hikes, compressing cap rates from 2023 levels. Use the <a href=\"\/states\/north-carolina\/cap-rate-calculator\">NC cap rate calculator<\/a> to analyze any deal with state-specific defaults.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<p><span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav>\n<ul class=\"ez-toc-list ez-toc-list-level-1 \">\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#North_Carolina_Cap_Rates_by_City_2026_Data\">North Carolina Cap Rates by City: 2026 Data<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#What_Drives_Cap_Rates_in_North_Carolina\">What Drives Cap Rates in North Carolina<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#Greensboro_Highest_Cap_Rates_in_NC\">Greensboro: Highest Cap Rates in NC<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#Charlotte_Banking_Growth_Compressed_Caps\">Charlotte: Banking Growth, Compressed Caps<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#Raleigh_Lowest_Cap_Rates_Strongest_Fundamentals\">Raleigh: Lowest Cap Rates, Strongest Fundamentals<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#Asheville_Tourism_Low_Tax\">Asheville: Tourism + Low Tax<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#NC_Cap_Rate_vs_Other_States\">NC Cap Rate vs Other States<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#5_NC_Cap_Rate_Mistakes\">5 NC Cap Rate Mistakes<\/a>\n<ul class=\"ez-toc-list-level-3\">\n<li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#1_Using_Statewide_Tax_Rate_for_Durham_County\">1. Using Statewide Tax Rate for Durham County<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#2_Ignoring_Post-2025_Insurance_Increases\">2. Ignoring Post-2025 Insurance Increases<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#3_Comparing_Raleigh_Cap_Rates_to_Greensboro\">3. Comparing Raleigh Cap Rates to Greensboro<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#4_Not_Accounting_for_399_State_Income_Tax\">4. Not Accounting for 3.99% State Income Tax<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#5_Underestimating_Coastal_Cap_Rate_Drag\">5. Underestimating Coastal Cap Rate Drag<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#Frequently_Asked_Questions\">Frequently Asked Questions<\/a>\n<ul class=\"ez-toc-list-level-3\">\n<li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#What_is_a_good_cap_rate_in_North_Carolina\">What is a good cap rate in North Carolina?<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#How_does_NC_property_tax_affect_cap_rate\">How does NC property tax affect cap rate?<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#Why_did_NC_cap_rates_drop_in_2025-2026\">Why did NC cap rates drop in 2025-2026?<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#Is_Greensboro_or_Charlotte_better_for_cap_rate_investing\">Is Greensboro or Charlotte better for cap rate investing?<\/a><\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#How_do_NC_cap_rates_compare_to_Georgia_and_Ohio\">How do NC cap rates compare to Georgia and Ohio?<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/north-carolina-cap-rate\/#Related_NC_Tools\">Related NC Tools<\/a><\/li>\n<\/ul>\n<\/nav>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"North_Carolina_Cap_Rates_by_City_2026_Data\"><\/span><span class=\"ez-toc-section\" id=\"North_Carolina_Cap_Rates_by_City_2026_Data\"><\/span><span class=\"ez-toc-section\" id=\"North_Carolina_Cap_Rates_by_City_2026_Data\"><\/span>North Carolina Cap Rates by City: 2026 Data<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Metro<\/th>\n<th>Median Price<\/th>\n<th>Median Rent<\/th>\n<th>Typical Cap Rate<\/th>\n<th>Vacancy<\/th>\n<th>Property Tax<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Greensboro\u2013High Point<\/strong><\/td>\n<td>$245,000<\/td>\n<td>$1,300\/mo<\/td>\n<td><strong>5.5\u20137.0%<\/strong><\/td>\n<td>6.5%<\/td>\n<td>0.95%<\/td>\n<\/tr>\n<tr>\n<td><strong>Asheville<\/strong><\/td>\n<td>$395,000<\/td>\n<td>$1,650\/mo<\/td>\n<td><strong>4.5\u20135.5%<\/strong><\/td>\n<td>5.0%<\/td>\n<td>0.65%<\/td>\n<\/tr>\n<tr>\n<td><strong>Charlotte<\/strong><\/td>\n<td>$420,000<\/td>\n<td>$1,750\/mo<\/td>\n<td><strong>3.5\u20134.5%<\/strong><\/td>\n<td>4.5%<\/td>\n<td>0.83%<\/td>\n<\/tr>\n<tr>\n<td><strong>Raleigh\u2013Cary<\/strong><\/td>\n<td>$460,000<\/td>\n<td>$1,800\/mo<\/td>\n<td><strong>3.0\u20134.0%<\/strong><\/td>\n<td>4.0%<\/td>\n<td>0.72%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Greensboro leads on cap rate because of lower purchase prices and the Toyota battery plant corridor driving rental demand. Raleigh has the lowest cap rates \u2014 compressed by Research Triangle tech growth and sub-4% vacancy. Both are rational pricing: higher cap rate = more risk (slower growth, higher vacancy), lower cap rate = premium for stability and appreciation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Drives_Cap_Rates_in_North_Carolina\"><\/span><span class=\"ez-toc-section\" id=\"What_Drives_Cap_Rates_in_North_Carolina\"><\/span><span class=\"ez-toc-section\" id=\"What_Drives_Cap_Rates_in_North_Carolina\"><\/span>What Drives Cap Rates in North Carolina<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Property tax advantage.<\/strong> NC&#8217;s 0.66% effective rate per <a href=\"https:\/\/taxfoundation.org\/location\/north-carolina\/\" target=\"_blank\" rel=\"noopener noreferrer\">Tax Foundation<\/a> is the lowest among the 5 states we cover. On a $300K property, NC tax is $1,980 \u2014 vs $4,200 in Texas. That $2,220 difference goes straight to NOI, adding roughly 0.7% to cap rate vs an identical Texas property.<\/p>\n<p><strong>Insurance headwind.<\/strong> NC insurance rose to $3,000\/yr after 7.5% hikes in 2025 and 2026. Coastal counties run $4,000\u2013$6,000. This $1,000\u2013$3,000 increase since 2023 has compressed cap rates by 0.3\u20131.0% depending on the market. Data from <a href=\"https:\/\/www.ncdoi.gov\/\" target=\"_blank\" rel=\"noopener noreferrer\">NC Department of Insurance<\/a>.<\/p>\n<p><strong>Tech-driven compression in the Triangle.<\/strong> Raleigh-Durham cap rates are 3\u20134% \u2014 among the lowest in the Southeast. Apple, Google, Epic Games campus openings absorb housing supply faster than builders can deliver. Investors accept low cap rates because they are pricing in 5%+ annual appreciation. Verify with <a href=\"https:\/\/fred.stlouisfed.org\/tags\/series?t=north+carolina\" target=\"_blank\" rel=\"noopener noreferrer\">FRED NC economic data<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"900\" height=\"200\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/nc-caprate-greensboro.jpg\" alt=\"North Carolina cap rate Greensboro Duplex: NOI $9,997 \u00f7 $180K = 5.6% cap rate \u2014 best in NC\" class=\"wp-image-912\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/nc-caprate-greensboro.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/nc-caprate-greensboro-300x67.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/nc-caprate-greensboro-768x171.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>Greensboro Duplex: NOI $9,997 \u00f7 $180K = 5.6% cap rate \u2014 best in NC<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Greensboro_Highest_Cap_Rates_in_NC\"><\/span><span class=\"ez-toc-section\" id=\"Greensboro_Highest_Cap_Rates_in_NC\"><\/span><span class=\"ez-toc-section\" id=\"Greensboro_Highest_Cap_Rates_in_NC\"><\/span>Greensboro: Highest Cap Rates in NC<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A $180K duplex renting for $1,500\/month produces roughly $10,000 NOI and a <strong>5.6% cap rate<\/strong> \u2014 best in NC. Toyota&#8217;s battery plant in Randolph County and growing logistics sector (Amazon, FedEx) provide demand. Properties sell in 25 days.<\/p>\n<p>The risk: Greensboro has the highest vacancy in NC (6.5%) and weakest appreciation (3.8% YoY vs Charlotte&#8217;s 4.5%). Cap rates are higher because the market prices in these risks. For investors who can manage vacancy, Greensboro delivers the strongest income yield. Calculate your deal in the <a href=\"\/states\/north-carolina\/cap-rate-calculator\">NC cap rate calculator<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img> Asheville 5% &gt; Charlotte 4% &gt; Raleigh 3.5%&#8221; class=&#8221;wp-image-911&#8243; \/&gt;<figcaption>NC Cap Rates: Greensboro 6.5% &gt; Asheville 5% &gt; Charlotte 4% &gt; Raleigh 3.5%<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Charlotte_Banking_Growth_Compressed_Caps\"><\/span><span class=\"ez-toc-section\" id=\"Charlotte_Banking_Growth_Compressed_Caps\"><\/span><span class=\"ez-toc-section\" id=\"Charlotte_Banking_Growth_Compressed_Caps\"><\/span>Charlotte: Banking Growth, Compressed Caps<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Charlotte cap rates sit at 3.5\u20134.5%. A $420K SFR at $1,750\/month rent produces roughly $10,000 NOI \u2014 a <strong>2.4% cap rate<\/strong> that reflects appreciation pricing. Bank of America, Wells Fargo, and the new light rail expansion drive demand. Vacancy at 4.5% is tight.<\/p>\n<p>Charlotte works for total-return investors: negative cash flow offset by 4.5% annual appreciation and principal paydown. Calculate total ROI in the <a href=\"\/rental-property-roi-calculator\">ROI calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Raleigh_Lowest_Cap_Rates_Strongest_Fundamentals\"><\/span><span class=\"ez-toc-section\" id=\"Raleigh_Lowest_Cap_Rates_Strongest_Fundamentals\"><\/span><span class=\"ez-toc-section\" id=\"Raleigh_Lowest_Cap_Rates_Strongest_Fundamentals\"><\/span>Raleigh: Lowest Cap Rates, Strongest Fundamentals<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Raleigh cap rates at 3\u20134% are the lowest in NC and among the lowest in the Southeast. The Research Triangle&#8217;s tech ecosystem (Apple, Google, Epic Games, plus NC State\/Duke\/UNC) creates sustained demand. Properties sell in 16 days. Vacancy at 4.0% is the tightest in NC.<\/p>\n<p>At $460K median, Raleigh is a conventional-loan-only market. DSCR ratios fall well below 1.00. Investors buy Raleigh for 10+ year holds with appreciation as the primary return driver. Check DSCR in the <a href=\"\/states\/north-carolina\/dscr-calculator\">NC DSCR calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Asheville_Tourism_Low_Tax\"><\/span><span class=\"ez-toc-section\" id=\"Asheville_Tourism_Low_Tax\"><\/span><span class=\"ez-toc-section\" id=\"Asheville_Tourism_Low_Tax\"><\/span>Asheville: Tourism + Low Tax<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Asheville&#8217;s 0.65% property tax (Buncombe County) is the lowest among NC metros. Cap rates run 4.5\u20135.5% \u2014 better than Charlotte\/Raleigh because of the mountain market&#8217;s pricing dynamics. STR potential is significant (year-round tourism). Limited new construction keeps supply tight.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"NC_Cap_Rate_vs_Other_States\"><\/span><span class=\"ez-toc-section\" id=\"NC_Cap_Rate_vs_Other_States\"><\/span><span class=\"ez-toc-section\" id=\"NC_Cap_Rate_vs_Other_States\"><\/span>NC Cap Rate vs Other States<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>State<\/th>\n<th>Typical SFR Cap Rate<\/th>\n<th>Property Tax<\/th>\n<th>Insurance<\/th>\n<th>Income Tax<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>North Carolina<\/strong><\/td>\n<td>3.5\u20137.0%<\/td>\n<td><strong>0.66%<\/strong><\/td>\n<td>$3,000<\/td>\n<td>3.99%<\/td>\n<\/tr>\n<tr>\n<td>Georgia<\/td>\n<td>4.0\u20137.0%<\/td>\n<td>0.79%<\/td>\n<td>$2,100<\/td>\n<td>4.99%<\/td>\n<\/tr>\n<tr>\n<td>Ohio<\/td>\n<td>5.0\u20137.0%<\/td>\n<td>1.36%<\/td>\n<td>$2,100<\/td>\n<td>2.75%<\/td>\n<\/tr>\n<tr>\n<td>Texas<\/td>\n<td>4.5\u20136.5%<\/td>\n<td>1.40%<\/td>\n<td>$3,300<\/td>\n<td>0%<\/td>\n<\/tr>\n<tr>\n<td>Florida<\/td>\n<td>4.0\u20136.0%<\/td>\n<td>1.10%<\/td>\n<td>$4,500<\/td>\n<td>0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>NC&#8217;s wide cap rate range (3.5\u20137%) reflects the gulf between Raleigh (tech premium) and Greensboro (value market). The 0.66% property tax is the best of all five states. Insurance ($3,000) has risen to TX-like levels but remains below FL ($4,500). For full state comparison, see <a href=\"\/blog\/cap-rate-by-state-best-markets-2026\/\">cap rate by state guide<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_NC_Cap_Rate_Mistakes\"><\/span><span class=\"ez-toc-section\" id=\"5_NC_Cap_Rate_Mistakes\"><\/span><span class=\"ez-toc-section\" id=\"5_NC_Cap_Rate_Mistakes\"><\/span>5 NC Cap Rate Mistakes<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Using_Statewide_Tax_Rate_for_Durham_County\"><\/span><span class=\"ez-toc-section\" id=\"1_Using_Statewide_Tax_Rate_for_Durham_County\"><\/span><span class=\"ez-toc-section\" id=\"1_Using_Statewide_Tax_Rate_for_Durham_County\"><\/span>1. Using Statewide Tax Rate for Durham County<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> Statewide 0.66% vs Durham 1.04% = 58% higher. On a $400K property: $2,640 vs $4,160 \u2014 $1,520\/year difference = 0.4% cap rate swing.<\/p>\n<p><strong>Fix:<\/strong> County-specific rate from the county tax assessor. The <a href=\"\/states\/north-carolina\/cap-rate-calculator\">NC cap rate calculator<\/a> defaults statewide \u2014 override it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Ignoring_Post-2025_Insurance_Increases\"><\/span><span class=\"ez-toc-section\" id=\"2_Ignoring_Post-2025_Insurance_Increases\"><\/span><span class=\"ez-toc-section\" id=\"2_Ignoring_Post-2025_Insurance_Increases\"><\/span>2. Ignoring Post-2025 Insurance Increases<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> Using $1,800\/yr estimates from 2023 when actual 2026 cost is $3,000+. That $1,200 difference is 0.3\u20130.5% cap rate on a $300K property.<\/p>\n<p><strong>Fix:<\/strong> Budget $3,000 minimum for inland, $4,000+ for coastal. Get real quotes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Comparing_Raleigh_Cap_Rates_to_Greensboro\"><\/span><span class=\"ez-toc-section\" id=\"3_Comparing_Raleigh_Cap_Rates_to_Greensboro\"><\/span><span class=\"ez-toc-section\" id=\"3_Comparing_Raleigh_Cap_Rates_to_Greensboro\"><\/span>3. Comparing Raleigh Cap Rates to Greensboro<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> 3.5% in Raleigh and 6% in Greensboro are different risk profiles. Raleigh has Apple\/Google demand and 4% vacancy. Greensboro has 6.5% vacancy and manufacturing dependence.<\/p>\n<p><strong>Fix:<\/strong> Compare within the same metro. Use cap rate to rank deals in the same city.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Not_Accounting_for_399_State_Income_Tax\"><\/span><span class=\"ez-toc-section\" id=\"4_Not_Accounting_for_399_State_Income_Tax\"><\/span><span class=\"ez-toc-section\" id=\"4_Not_Accounting_for_399_State_Income_Tax\"><\/span>4. Not Accounting for 3.99% State Income Tax<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> Cap rate is pre-income-tax. After 3.99% NC tax, your effective yield drops. A 5% cap rate in NC delivers less after-tax than 5% in TX\/FL (0% tax).<\/p>\n<p><strong>Fix:<\/strong> Calculate after-tax cash flow separately in the <a href=\"\/property-cash-flow-calculator\">cash flow calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Underestimating_Coastal_Cap_Rate_Drag\"><\/span><span class=\"ez-toc-section\" id=\"5_Underestimating_Coastal_Cap_Rate_Drag\"><\/span><span class=\"ez-toc-section\" id=\"5_Underestimating_Coastal_Cap_Rate_Drag\"><\/span>5. Underestimating Coastal Cap Rate Drag<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> Wilmington\/OBX insurance at $5,000\u2013$6,000\/yr + flood insurance $1,500 = $7,500 total. On a $350K coastal property, that is 2.1% of value consumed by insurance alone.<\/p>\n<p><strong>Fix:<\/strong> Coastal deals must work on STR income (2-3x LTR rent) to produce acceptable cap rates.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>\n<div class=\"schema-faq-section\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\"><span class=\"ez-toc-section\" id=\"What_is_a_good_cap_rate_in_North_Carolina\"><\/span><span class=\"ez-toc-section\" id=\"What_is_a_good_cap_rate_in_North_Carolina\"><\/span><span class=\"ez-toc-section\" id=\"What_is_a_good_cap_rate_in_North_Carolina\"><\/span>What is a good cap rate in North Carolina?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" style=\"display:block\">\n<p>Greensboro: 5.5\u20137% (cash flow). Asheville: 4.5\u20135.5% (tourism + low tax). Charlotte: 3.5\u20134.5% (appreciation). Raleigh: 3\u20134% (tech premium). A &#8220;good&#8221; cap rate depends on your strategy. Use the <a href=\"\/states\/north-carolina\/cap-rate-calculator\">NC cap rate calculator<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\"><span class=\"ez-toc-section\" id=\"How_does_NC_property_tax_affect_cap_rate\"><\/span><span class=\"ez-toc-section\" id=\"How_does_NC_property_tax_affect_cap_rate\"><\/span><span class=\"ez-toc-section\" id=\"How_does_NC_property_tax_affect_cap_rate\"><\/span>How does NC property tax affect cap rate?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" style=\"display:none\">\n<p>NC&#8217;s 0.66% effective rate is the lowest of the 5 states we cover. Lower tax = higher NOI = higher cap rate vs identical properties in high-tax states. A $300K NC property saves $2,220\/year vs Texas (1.40%) \u2014 adding roughly 0.7% to cap rate.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\"><span class=\"ez-toc-section\" id=\"Why_did_NC_cap_rates_drop_in_2025-2026\"><\/span><span class=\"ez-toc-section\" id=\"Why_did_NC_cap_rates_drop_in_2025-2026\"><\/span><span class=\"ez-toc-section\" id=\"Why_did_NC_cap_rates_drop_in_2025-2026\"><\/span>Why did NC cap rates drop in 2025-2026?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" style=\"display:none\">\n<p>Two factors: (1) home prices continued rising 4\u20135% while rents grew 3\u20134%, compressing the rent-to-price ratio; (2) insurance costs spiked 15.6% over 2025-2026, reducing NOI. The insurance increase alone cut cap rates by 0.3\u20130.5% statewide.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\"><span class=\"ez-toc-section\" id=\"Is_Greensboro_or_Charlotte_better_for_cap_rate_investing\"><\/span><span class=\"ez-toc-section\" id=\"Is_Greensboro_or_Charlotte_better_for_cap_rate_investing\"><\/span><span class=\"ez-toc-section\" id=\"Is_Greensboro_or_Charlotte_better_for_cap_rate_investing\"><\/span>Is Greensboro or Charlotte better for cap rate investing?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" style=\"display:none\">\n<p>Greensboro for income (5.5\u20137% cap rates, $245K median). Charlotte for growth (3.5\u20134.5% caps, but 4.5% annual appreciation and banking-sector stability). Many NC investors own in both markets.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\"><span class=\"ez-toc-section\" id=\"How_do_NC_cap_rates_compare_to_Georgia_and_Ohio\"><\/span><span class=\"ez-toc-section\" id=\"How_do_NC_cap_rates_compare_to_Georgia_and_Ohio\"><\/span><span class=\"ez-toc-section\" id=\"How_do_NC_cap_rates_compare_to_Georgia_and_Ohio\"><\/span>How do NC cap rates compare to Georgia and Ohio?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" style=\"display:none\">\n<p>NC&#8217;s range (3.5\u20137%) is wider than Georgia (4\u20137%) or Ohio (5\u20137%) because Raleigh&#8217;s tech premium compresses the bottom end more than any other Southeast metro. NC wins on property tax (0.66% vs GA 0.79%, OH 1.36%) but loses on insurance ($3,000 vs GA $2,100, OH $2,100).<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Related_NC_Tools\"><\/span><span class=\"ez-toc-section\" id=\"Related_NC_Tools\"><\/span><span class=\"ez-toc-section\" id=\"Related_NC_Tools\"><\/span>Related NC Tools<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"\/states\/north-carolina\/cap-rate-calculator\"><strong>NC Cap Rate Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/states\/north-carolina\/rental-property-calculator\"><strong>NC Rental Property Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/states\/north-carolina\/closing-costs-calculator\"><strong>NC Closing Costs Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/states\/north-carolina\/dscr-calculator\"><strong>NC DSCR Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/states\/north-carolina\/brrrr-calculator\"><strong>NC BRRRR Calculator<\/strong><\/a><\/li>\n<li><a href=\"\/states\/north-carolina\/\"><strong>NC Calculator Hub<\/strong><\/a><\/li>\n<li><a href=\"\/blog\/north-carolina-rental-property-investment\/\">NC Rental Property Guide<\/a><\/li>\n<li><a href=\"\/blog\/good-cap-rate-rental-property\/\">What Is a Good Cap Rate?<\/a><\/li>\n<li><a href=\"\/blog\/cap-rate-by-state-best-markets-2026\/\">Cap Rate by State 2026<\/a><\/li>\n<li><a href=\"\/calculators\"><strong>All 30+ Calculators<\/strong><\/a><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Durham_Research_Triangle_Value_Play\"><\/span><span class=\"ez-toc-section\" id=\"Durham_Research_Triangle_Value_Play\"><\/span>Durham: Research Triangle Value Play<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Median price:<\/strong> $330,000 \u00b7 <strong>Rent:<\/strong> $1,500\/mo \u00b7 <strong>Vacancy:<\/strong> 4.5% \u00b7 <strong>Tax:<\/strong> 1.04%<\/p>\n<p>Durham sits between Raleigh pricing ($460K) and Greensboro value ($245K). Duke University and the biotech corridor (Research Triangle Park) provide stable employment and tenant demand. Cap rates run 4\u20135.5% \u2014 better than Raleigh, worse than Greensboro. Durham&#8217;s 1.04% property tax is the highest among NC metros, which drags NOI. But 4.5% vacancy and 5.2% annual appreciation offset the tax burden for buy-and-hold investors.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"260\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/nc-caprate-vs-states.jpg\" alt=\"North Carolina cap rate vs other states comparison\" class=\"wp-image-913\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/nc-caprate-vs-states.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/nc-caprate-vs-states-300x87.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/nc-caprate-vs-states-768x222.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>NC vs GA vs TX vs FL: NC lowest property tax at 0.66%<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Calculate_NC_Cap_Rate_Step_by_Step\"><\/span><span class=\"ez-toc-section\" id=\"How_to_Calculate_NC_Cap_Rate_Step_by_Step\"><\/span>How to Calculate NC Cap Rate: Step by Step<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The formula is straightforward:<\/p>\n<pre><code>Cap Rate = Net Operating Income (NOI) \u00f7 Purchase Price \u00d7 100<\/code><\/pre>\n<p>Where NOI = Gross Rent \u2212 Vacancy \u2212 Operating Expenses (tax, insurance, maintenance, PM). Mortgage is NOT included \u2014 cap rate measures unlevered property yield.<\/p>\n<p><strong>Quick example:<\/strong> Greensboro duplex, $180K purchase, $1,500\/mo rent.<\/p>\n<pre><code>Gross rent: $18,000\/yr\nVacancy (6.5%): \u2212$1,170\nEGI: $16,830\nExpenses: \u2212$6,833\nNOI: $9,997\n\nCap Rate = $9,997 \u00f7 $180,000 = 5.6%<\/code><\/pre>\n<p>Run your own numbers in the <a href=\"\/states\/north-carolina\/cap-rate-calculator\">NC cap rate calculator<\/a>. For NOI breakdown, use the <a href=\"\/noi-calculator\">NOI calculator<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>North Carolina cap rates range from 3.5\u20134.5% in Raleigh to 5.5\u20137% in Greensboro \u2014 shaped by NC&#8217;s ultra-low 0.66% property tax that boosts NOI above most competing states. The tradeoff:&#8230;<\/p>\n","protected":false},"author":1,"featured_media":909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=901"}],"version-history":[{"count":4,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/901\/revisions"}],"predecessor-version":[{"id":1318,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/901\/revisions\/1318"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/909"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}