Washington Rental Property ROI Calculator
Free Washington rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Washington's 1.03% 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 Washington. It factors in the mortgage payment (using a standard amortization formula), property taxes at Washington's effective rate of 1.03%, 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
Washington has an effective property tax rate of 1.03%, which is below the national average of 1.10%. Washington has no state income tax, which can improve your net rental income.
Frequently Asked Questions
What is the average property tax rate in Washington?
Washington's effective property tax rate is 1.03%, which means on a $560,000 home, you'd pay approximately $5,768 per year in property taxes.
Is Washington a good state for rental property investment?
Washington offers a median home price of $560,000 with 2BR rents averaging $1695/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 Washington?
A cap rate of 5-8% is generally considered good for rental properties. In Washington, 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 Washington?
For a median-priced home in Washington ($560,000), a 20% down payment would be $112,000. Including estimated closing costs of $16,800, you'd need approximately $128,800 in cash.
Does Washington have landlord-friendly laws?
Washington has strong tenant protection laws, which can extend eviction timelines. Factor this into your vacancy rate estimates.
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