Massachusetts Rental Property ROI Calculator
Free Massachusetts rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Massachusetts's 1.23% property tax rate.
How This Calculator Works
Calculation methodology and assumptions
This calculator uses standard real estate investment analysis to determine the return on a rental property in Massachusetts. It factors in the mortgage payment (using a standard amortization formula), property taxes at Massachusetts's effective rate of 1.23%, insurance, vacancy loss, maintenance reserves, and property management fees. The cap rate is calculated as Net Operating Income divided by purchase price. Cash-on-cash return measures annual cash flow relative to total cash invested (down payment + estimated closing costs). The 10-year projection assumes 3% annual appreciation and 2% annual rent increases.
Key State Information
Massachusetts has an effective property tax rate of 1.23%, which is above the national average of 1.10%. Massachusetts has a flat 5% state income tax that applies to rental income. Massachusetts offers a homestead exemption of up to $500,000 (applies to primary residence, not investment properties).
Frequently Asked Questions
What is the average property tax rate in Massachusetts?
Massachusetts's effective property tax rate is 1.23%, which means on a $580,000 home, you'd pay approximately $7,134 per year in property taxes.
Is Massachusetts a good state for rental property investment?
Massachusetts offers a median home price of $580,000 with 2BR rents averaging $1890/month. Property tax rates are moderate. Use this calculator with your specific numbers to determine the actual ROI.
What is a good cap rate for rental property in Massachusetts?
A cap rate of 5-8% is generally considered good for rental properties. In Massachusetts, cap rates vary significantly by market. Urban areas tend to have lower cap rates (3-5%) but more consistent appreciation, while rural areas may offer higher cap rates (7-10%) with less growth potential.
How much do I need to invest in a rental property in Massachusetts?
For a median-priced home in Massachusetts ($580,000), a 20% down payment would be $116,000. Including estimated closing costs of $17,400, you'd need approximately $133,400 in cash.
Does Massachusetts have landlord-friendly laws?
Massachusetts has strong tenant protection laws, which can extend eviction timelines. Factor this into your vacancy rate estimates.
Related Calculators
More Rental Property Calculators
More Calculators for Massachusetts
Explore related financial tools with Massachusetts data