Raleigh, NC Research Triangle Park drives tech and biotech employment; one of the fastest-growing metros in the US. This report covers current market conditions, the full investment arithmetic on a median-priced rental, and where Raleigh ranks against the 19 other metros tracked here.
Current Market Snapshot
Investment Analysis
With a gross yield of 4.9% and a median price of $395,000, Raleigh sits at the lower end of the yield spectrum. A typical 2-bedroom property rents for approximately $1,612/month based on HUD Fair Market Rent data.
The affordability index of 83 suggests housing costs exceed what the median household can comfortably afford — watch for affordability-driven demand moderation.
Market Temperature: Hot
With a median DOM of 27 days and approximately 3,200 active listings and fierce competition, Raleigh's market is currently classified as hot. Low inventory is supporting seller leverage; buyers should move decisively on well-priced properties.
The Numbers on a Median-Priced Rental
Buying the median Raleigh home at $395,000 with 20% down takes $90,850 in cash — a $79,000 deposit plus roughly $11,850 in closing costs at 3% — and leaves a $316,000 loan. At 7.0% over 30 years that is $2,102/month in principal and interest.
On those assumptions the median Raleigh rental produces a 1.64% cap rate and falls roughly $1,561 a month short of covering debt service. Cash-on-cash return on the $90,850 invested is -20.62%, and the debt service coverage ratio is 0.26× — below 1.0×, meaning the property cannot service its own debt at 20% down — this is an appreciation play, not a cash flow one. On a rent basis, you need $3,457 a month to break even — 114% above the $1,612 HUD benchmark.
Rate and Rent Sensitivity
Financing cost dominates the outcome. One percentage point on the mortgage rate moves monthly cash flow by more than a 10% swing in rent does:
| Mortgage Rate | P+I Payment | Monthly Cash Flow |
|---|---|---|
| 6.0% | $1,895/mo | -$1,354/mo |
| 7.0% | $2,102/mo | -$1,561/mo |
| 8.0% | $2,319/mo | -$1,778/mo |
| Rent Scenario | Monthly Rent | Cap Rate | Monthly Cash Flow |
|---|---|---|---|
| HUD FMR − 10% | $1,450/mo | 1.23% | -$1,698/mo |
| HUD FMR | $1,612/mo | 1.64% | -$1,561/mo |
| HUD FMR + 10% | $1,773/mo | 2.06% | -$1,425/mo |
How Raleigh Ranks
Among the 20 metros covered here, Raleigh is 14th by gross rental yield and 9th most expensive. Its 4.9% yield sits below the 5.15% median of the set, and its $395,000 price sits above the $390,000 median. The price-to-rent ratio is 20.4× and the price-to-income ratio is 5.3× against a median household income of $74,000.
The metros closest to Raleigh on gross yield are Nashville, TN (5.0%), Dallas, TX (5.0%), Austin, TX (4.8%). If Raleigh is on your list, those are the markets whose numbers you should be holding it against — not the national average.
What Has to Be True for Raleigh to Work
A median-priced rental here consumes $18,732 a year in cash. That is not automatically a bad deal: the same loan repays $3,210 of principal in year one, so the true first-year drag is about $15,522. To break even on the cash line alone the property has to appreciate 4.74% a year, against the +3.5% the metro has actually posted over the past twelve months. Hold it five years and amortisation alone builds $18,544 of equity — the question is whether you can fund the shortfall for that long without selling at the wrong moment.
Key Data Points
| Metric | Value |
|---|---|
| Median Sale Price | $395,000 |
| YoY Price Change | +3.5% |
| Median Days on Market | 27 days |
| Active Listings | 3,200 |
| Est. 2BR Fair Market Rent | $1,612/mo |
| Gross Rental Yield | 4.9% |
| Median Household Income | $74,000 |
| Affordability Index | 83 |
| Price-to-Rent Ratio | 20.4× |
| Price-to-Income Ratio | 5.3× |
| Gross Rent Multiplier | 20.4 |
| Cap Rate (45% expense basis) | 1.64% |
| Cash Flow at 20% Down | -$1,561/mo |
| Cash-on-Cash Return | -20.62% |
| Break-Even Rent | $3,457/mo |
Getting Live Data via API
ZipMarketData provides live data for all ZIP codes within the Raleigh, NC metro. Use the /market-stats endpoint with any Raleigh ZIP code for the most current figures — or run the same analysis without writing code in the dashboard.