Virginia Rental Property ROI Calculator
Free Virginia rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Virginia's 0.82% 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 Virginia. It factors in the mortgage payment (using a standard amortization formula), property taxes at Virginia's effective rate of 0.82%, 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
Virginia has an effective property tax rate of 0.82%, which is below the national average of 1.10%. Virginia has a progressive income tax up to 5.75% state income tax that applies to rental income.
Frequently Asked Questions
What is the average property tax rate in Virginia?
Virginia's effective property tax rate is 0.82%, which means on a $380,000 home, you'd pay approximately $3,116 per year in property taxes.
Is Virginia a good state for rental property investment?
Virginia offers a median home price of $380,000 with 2BR rents averaging $1425/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 Virginia?
A cap rate of 5-8% is generally considered good for rental properties. In Virginia, 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 Virginia?
For a median-priced home in Virginia ($380,000), a 20% down payment would be $76,000. Including estimated closing costs of $11,400, you'd need approximately $87,400 in cash.
Does Virginia have landlord-friendly laws?
Virginia has moderate landlord-tenant laws. Research specific local regulations before investing.
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