North Dakota Rental Property ROI Calculator
Free North Dakota rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using North Dakota's 0.98% 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 North Dakota. It factors in the mortgage payment (using a standard amortization formula), property taxes at North Dakota's effective rate of 0.98%, 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
North Dakota has an effective property tax rate of 0.98%, which is below the national average of 1.10%. North Dakota has a flat 1.95% state income tax that applies to rental income.
Frequently Asked Questions
What is the average property tax rate in North Dakota?
North Dakota's effective property tax rate is 0.98%, which means on a $250,000 home, you'd pay approximately $2,450 per year in property taxes.
Is North Dakota a good state for rental property investment?
North Dakota offers a median home price of $250,000 with 2BR rents averaging $875/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 North Dakota?
A cap rate of 5-8% is generally considered good for rental properties. In North Dakota, 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 North Dakota?
For a median-priced home in North Dakota ($250,000), a 20% down payment would be $50,000. Including estimated closing costs of $7,500, you'd need approximately $57,500 in cash.
Does North Dakota have landlord-friendly laws?
North Dakota has moderate landlord-tenant laws. Research specific local regulations before investing.
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