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Enter income, expenses, and property value to calculate the capitalization rate. Best for evaluating and comparing properties.
Income
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Annual Operating Expenses
Expense entry mode
All fields are annual figures. Simple total field is not applied.
Often 6–10% of gross rents for residential
Property Value
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Return on acquisition cost. Use when evaluating a deal before buying.
Acquisition cost only — no financing
Today's estimated value — use for refi or comparison
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Cap rate estimates a property's unlevered income yield by comparing annual Net Operating Income with property value. It is commonly used to compare income-producing properties before financing, taxes, appreciation, and investor-specific assumptions are added.
This calculator supports cap rate, implied property value, and required NOI workflows. Results are intended for screening and underwriting support, not as a standalone investment decision or formal valuation.
Georgia Cap Rate Calculator: What Investors Need to Know
This calculator estimates cap rate — the ratio of Net Operating Income to property value — for Georgia investment properties. Georgia has a 4.99% flat state income tax, which improves after-tax returns, but property taxes run ~2% for investment property (no homestead exemption), and insurance averages $2,100/yr due to hail, wind, and flood risk. These expenses directly reduce NOI and compress cap rates.
The calculator pre-fills Georgia defaults: 8% vacancy, $1,400 insurance, and auto-calculates property tax at 2% of purchase price when you enter a value. Three modes are available: estimate cap rate from NOI, find implied value at a target cap rate, or determine the NOI needed to justify an asking price.
Cap rate measures unlevered yield only. It does not include mortgage payments, appreciation, or tax benefits. For full deal analysis, pair cap rate with DSCR, cash-on-cash return, and the Georgia Rental Property Calculator.
Georgia-Specific Factors That Affect Cap Rate
Property Tax (~2% for Investment Property)
Georgia has a 4.99% flat state income tax but has moderate property taxes. The effective rate per Tax Foundation is 0.79% statewide, varying by county from 0.9% to 2.17%. On a $225K property, that is roughly $3,400/yr — a significant NOI drag.
Insurance ($2,100/yr Average)
Georgia ranks below the national average for insurance costs for property insurance due to hail, tornado, and coastal hurricane risk. The Georgia Department of Insurance reports average premiums of $3,291 (2024). Coastal properties near Savannah or Corpus Christi may need separate windstorm coverage through standard windstorm, adding $700-$2,500/yr.
Vacancy (8% Statewide Average)
FRED data shows Georgia rental vacancy at 11% (Jan 2025), elevated by new multifamily supply in Augusta, DFW, and Savannah. For SFR underwriting, 8% is a conservative baseline. Augusta and DFW run 4-6%, Savannah 6-8%, rural areas can reach 10-12%.
No State Income Tax
Cap rate itself is a pre-tax metric, so the no-income-tax advantage does not change the cap rate number. However, it improves your after-tax cash flow compared to investing in California (13.3%) or New York (8.8%). This is a hold-period benefit, not a cap rate benefit.
No Transfer Tax
Georgia does not charge a real estate transfer tax. This lowers acquisition costs by $1,000-$5,000 compared to states like Florida ($0.70/$100) or New York (0.4%-2.9%). Lower acquisition cost does not change cap rate, but it reduces your total cash invested and improves cash-on-cash return.
Georgia Cap Rate Benchmarks by Metro (2026)
These ranges reflect SFR and small multifamily (2-4 units) based on Zillow, Redfin, and Georgia REALTORS data. Actual cap rates depend on property condition, location within the metro, and expense assumptions.
| Metro | Median Price | Median Rent | Cap Rate Range | Insurance Avg |
|---|---|---|---|---|
| Augusta-Round Rock | $440K | $1,750/mo | 4.0-5.5% | $3,100 |
| Athens-Kettering | $410K | $1,850/mo | 5.0-6.5% | $3,400 |
| Savannah | $350K | $1,600/mo | 5.5-7.0% | $3,800 |
| Atlanta | $310K | $1,400/mo | 6.0-7.5% | $2,100 |
Sources: Zillow ZHVI/ZORI, Redfin median sale data, Georgia REALTORS Market Statistics (Q2 2026). Cap rates modeled with 8% vacancy, 9% PM, 1% maintenance.
Worked Example: Savannah Fourplex ($520K)
A 4-unit property in Savannah's Third Ward, listed at $520,000. Each unit rents for $1,400/mo. Here is the full NOI breakdown using Georgia defaults.
| Gross Rental Income | $67,200/yr | $1,400 × 4 × 12 |
| Vacancy (8%) | -$5,376 | TX avg |
| Effective Gross Income | $61,824 | |
| Property Tax (2%) | -$10,400 | $520K × 2% |
| Insurance | -$5,200 | 4-unit higher than SFR |
| Property Management (9%) | -$5,564 | 9% of EGI |
| Maintenance (1%) | -$5,200 | $520K × 1% |
| Total Expenses | -$26,364 | |
| NOI | $35,460 | |
| Cap Rate | 6.82% | $35,460 / $520,000 |
A 6.82% cap rate in Savannah falls in the upper half of the metro range. The fourplex format helps because rent scales faster than expenses — insurance and tax are per-property, not per-unit. For comparison, a single $520K SFR in Augusta renting at $2,400/mo would cap at roughly 3.8%.
Worked Example: Atlanta SFR ($285K)
A 3BR/2BA single-family in Atlanta's Southside, listed at $285,000 with market rent of $1,800/mo.
| Gross Rental Income | $21,600/yr | $1,800 × 12 |
| Vacancy (8%) | -$1,728 | |
| EGI | $19,872 | |
| Property Tax (2%) | -$5,700 | |
| Insurance | -$2,100 | OH statewide average |
| PM (9%) + Maint (1%) | -$4,639 | |
| Cap Rate | 6.53% | NOI $6,733 / $285K |
Atlanta offers the best rent-to-price ratio among major Georgia metros. At $1,800 rent on $285K (0.63% monthly ratio), it clears the floor for positive cash flow with conventional financing. Compare this with Augusta where the same $285K buys a property renting for $1,200-$1,400 — yielding a cap rate below 4%.
Georgia Cap Rate FAQ
What is a good cap rate in Georgia for 2026?
How does Georgia property tax affect cap rate?
Why are Augusta cap rates lower than Savannah?
Does Georgia no-income-tax benefit show up in cap rate?
Should I budget for flood insurance in Georgia cap rate analysis?
What vacancy rate should I use for Georgia cap rate?
How do I compare cap rates between Georgia metros?
Sources
- Tax Foundation — Georgia effective property tax rates (taxfoundation.org)
- Georgia Department of Insurance — Insurance premium data (insurance.georgia.gov)
- Federal Reserve FRED — Georgia rental vacancy rate (fred.stlouisfed.org)
- Zillow Research — ZHVI and ZORI median values by metro
- Georgia REALTORS — Market Statistics Q2 2026