I've received inquiries about the rental income calculator showing different results each time numbers are entered. The differences arise because each calculator includes and excludes different items. By taking one Raleigh property as an example and calculating from start to finish, it becomes clear where these differences come from.

According to RentCafe, the average rent in Raleigh as of July 2026 is $1,575 per month, while Zumper reports a higher figure of $1,772. At the same time, the Zillow Home Value Index is approximately $435,237. Based on RentCafe's calculations, dividing the annual rental income of $18,900 by the purchase price gives a total return of about 4.3 percent. If you input just this number into the calculator, the result ends there.

The next step is to include property taxes. Wake County's effective property tax rate is about 0.75 percent according to SmartAsset. Calculating with this rate results in an annual property tax of about $3,264 for one Raleigh home. Adding insurance, management fees, and maintenance costs, and applying the 50 percent rule, the net operating income becomes $9,450 annually, and the cap rate drops to 2.2 percent. If the calculator runs without including the property tax item, the gap between total return and cap rate disappears entirely.

The next step is the cash-on-cash return. By entering the down payment percentage and loan interest rate into the calculator, you get the pre-tax cash flow relative to the actual cash invested, but you need to run it multiple times with different loan conditions to get a feel for it. Depending on how much you put down, the cash-on-cash return can be higher or lower than the cap rate, even for the same property.

According to the 1 percent rule, the rent should be $4,352 per month, which is 1 percent of the purchase price, but the actual rent is lower than this. When viewing the calculator results, the first step is to check which items are included and which are missing. You need to consider monthly cash flow along with property appreciation and the principal repayment on the loan to complete the total return.

Raleigh's rent has decreased by 2 percent over the past year according to RentCafe, but Zumper shows an increase of about 1 percent, indicating conflicting data. The steady growth of tech jobs in the Research Triangle area suggests a solid long-term rental demand, but the recent increase in new apartment supply seems to have slowed the pace of short-term rent increases.

If you're moving to Raleigh from another state, especially from a region with high property taxes, you might find Wake County's effective tax rate relatively low. However, since city and county tax rates are assessed separately, if you only input the county rate into the calculator and omit the city rate, the calculated property tax may be lower than the actual amount. After receiving the calculator results, it's wise to check that both of these items are included.

Looking at the purchase price trends reveals some unusual points. According to Zillow, the value of Raleigh homes has decreased by 2.0 percent over the past year. Given the strong job base in the Research Triangle area, this may seem surprising, but it appears that the recent surge in new supply has temporarily adjusted the pace of price increases. In a market where the cap rate is low at 2.2 percent and price appreciation is also slowing, Raleigh seems to be a market that favors long-term demand over short-term cash flow. For example, if you set the down payment at 20 percent, the actual cash invested would be about $87,047, which is 20 percent of the purchase price of $435,237. Dividing the pre-tax cash flow of $9,450 by the cash invested after subtracting the loan principal repayment gives the cash-on-cash return, so it's important to double-check that you entered the down payment percentage and loan interest rate accurately in the calculator as the final verification point.

Property tax rates and insurance can vary based on the county and the condition of the property, so please verify based on the actual address. This article does not constitute investment or legal advice, and it is recommended to consult with a real estate professional and accountant before making any actual contracts.