Investment Property
Analyzer
Enter the property details and get cap rate, cash-on-cash return, monthly cash flow, DSCR, and a plain-English verdict on whether the deal makes sense in Northern Utah.
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Call Randall — (801) 430-4000Is Northern Utah a good market for rental properties?
The short answer is yes — with the right property at the right price. Northern Utah has several fundamentals that make it attractive for long-term landlords: strong population growth, a tight rental market with 4–6% vacancy, a growing tech and military employment base, and appreciation that has outpaced the national average over the past decade.
That said, cap rates in Davis County have compressed as prices have risen. The days of finding a 7–8% cap rate in Layton are mostly behind us. Today's Northern Utah investor is typically targeting 4–6% cap rates and banking on appreciation and mortgage paydown to build wealth over time. Cash-flow-only investing is harder — but total return investing is very much alive.
Understanding the metrics this tool calculates
Cap Rate (Capitalization Rate) measures a property's income relative to its value, excluding financing. It's calculated as Net Operating Income ÷ Purchase Price. A 5% cap rate in Northern Utah is considered solid for a long-term hold. Below 4% is challenging; above 6% is excellent and increasingly rare in Davis County.
Cash-on-Cash Return measures the actual cash return on the cash you invested (your down payment + closing costs). A 6–8% cash-on-cash is generally considered the minimum threshold for a good rental investment. This metric accounts for your financing, unlike cap rate.
DSCR (Debt Service Coverage Ratio) is the ratio of your property's income to its debt payments. Lenders look for a DSCR of 1.25 or higher on investment property loans — meaning the property earns 25% more than it costs to service the debt. Below 1.0 means the property can't cover its own mortgage from rent.
Gross Rent Multiplier (GRM) is a quick screening metric: purchase price ÷ annual rent. In Northern Utah, a GRM under 15 is generally favorable; 15–18 is average; above 20 suggests the rent-to-price ratio is stretched.
| Metric | Strong | Acceptable | Weak |
|---|---|---|---|
| Cap Rate | ≥ 6% | 4–6% | < 4% |
| Cash-on-Cash | ≥ 8% | 5–8% | < 5% |
| Monthly Cash Flow | ≥ $400/mo | $100–$400/mo | < $100/mo |
| DSCR | ≥ 1.35 | 1.10–1.35 | < 1.10 |
| GRM | < 14 | 14–18 | > 18 |
Best areas for rental investment in Northern Utah
- Ogden / Roy / Clearfield — Lower purchase prices, higher rent-to-price ratios, strong blue-collar rental demand. Best cash flow in the region.
- Layton / Clinton — Military demand from Hill AFB creates consistent tenant pool. Steady appreciation and solid rents.
- West Haven / West Weber — New construction with strong rent demand but watch HOA costs that can erode cash flow.
- Brigham City / Box Elder County — Most affordable entry points, thinner tenant pool but very low competition from other investors.
- Farmington / Syracuse — Strong appreciation and quality tenants but cap rates are thinner. Better as appreciation plays than pure cash flow.
Frequently asked questions
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