Westport, CT — Rental Investment Analysis
🔴POOR— negative cash flow likelyData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Westport, CT has a -0.1% cap rate, indicating limited cash flow potential at current prices of $2,009,838 median.
Westport is very expensive relative to rents — expect negative cash flow. At $2,009,838 median home price, Westport requires significant capital. A 20% down payment alone is $401,967. With 3-bedroom rents around $3,300/month, the -0.1% cap rate tells the story. Cash flow is deeply negative at -$10,838/month with standard assumptions. This market requires appreciation to justify the investment.
At 0.16% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of -0.01 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.
Bottom line: At current valuations, Westport doesn't make sense for rental investors focused on returns. Look at lower-cost markets unless you have specific local knowledge.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
-0.1%
Below average
Monthly Cash Flow
-$10,838
After all expenses
Price-to-Rent
50.8
Overpriced for rent
DSCR
-0.01
Fails
Key Metrics
- Median Home Price
- $2,009,838
- Average Rent (3BR)
- $3,300/mo
- Price-to-Rent Ratio
- 50.8(high)
- 1% Rule
- 0.16%(fails — need 1%+)
- Cash-on-Cash Return
- -28.1%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 5%(+0.7% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- +1.1% YoY
Property Tax Rate
1.96%
of assessed value (CT avg)
Median Income
$83,572
household (CT avg)
Rent-to-Income
47.4%
Stretched
Section 8 Max Rent
$3,300/mo
3BR voucher payment
CT Investor Climate
Landlord Friendly
4/10
State Income Tax
Has state tax
Property Tax
1.96% effective
Population Trend
+1.1% (3yr)