Palo Alto, CA — Rental Investment Analysis

🔴POORnegative cash flow likely

Cap Rate

-0.6%

Below average

Monthly Cash Flow

-$22,706

After all expenses

Price-to-Rent

73.6

Overpriced for rent

DSCR

-0.09

Fails

📊 Key Metrics

Median Home Price
$3,906,630
Average Rent (3BR)
$4,415/mo
Price-to-Rent Ratio
73.6(high)
1% Rule
0.12%(fails — need 1%+)
Cash-on-Cash Return
-30.3%
Vacancy Rate
8.0%

📈 Market Strength

Assumptions Used

20% down, 7.000000000000001% rate, 30yr, 8% vacancy, 10% maintenance

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🏘️ Best Zip Codes in Palo Alto for Investors

94306
Cap Rate: -0.5%Cash Flow: -$19,689/mo$3,450,949
94301
Cap Rate: -0.7%Cash Flow: -$25,724/mo$4,362,311

All Zip Codes in Palo Alto

ZipCap RateCash FlowHome PriceRent (3BR)DSCR
94306-0.5%-$19,689$3,450,949$4,350/mo-0.07
94301-0.7%-$25,724$4,362,311$4,480/mo-0.11