Rental property in Salt Lake City, UT
2026 Market Data & Investment Analysis
Gross Yield
5.1%
Annual rent / price
Median Home Price
$450,000
As of 2026-Q1
Median Monthly Rent
$1,900
Per month
Population
200,591
+1.1% / yr (5y avg)
Estimates based on median market data. Actual returns depend on your specific property. Source: Zillow Research / U.S. Census Bureau, 2026-Q1.
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Pre-filled with Salt Lake City's median values. Adjust to match your specific property.
Property Details
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross Rental Yield
5.07%
Net Rental Yield
3.28%
Cap Rate
3.28%
Monthly Cash Flow
$1,230.00
Annual Cash Flow
$14,760.00
Salt Lake City rental market at a glance
Median Home Price — 5-Year Trend
Median Monthly Rent — 5-Year Trend
Salt Lake City presents a compelling rental investment opportunity with a 5.1% gross rental yield that significantly outpaces national averages, particularly attractive given the $450,000 median home price point. The market benefits from strong institutional demand drivers including the University of Utah's 32,000+ student population, a growing tech corridor anchored by companies like Adobe, SalesForce, and Goldman Sachs, and the sustained appeal of the Wasatch Mountains as a lifestyle destination attracting younger professionals. The 4.8% vacancy rate indicates a well-balanced market with healthy tenant demand rather than oversupply, suggesting rents have room to appreciate without destabilizing fundamentals.
However, the modest 1.1% five-year population growth rate presents a contrasting signal that demands scrutiny. While Salt Lake City proper shows measured expansion, this slower growth trajectory compared to Sunbelt metros suggests the city's appeal may be plateauing after years of rapid migration. The University of Utah's relatively stable enrollment and the tech sector's maturation indicate that explosive demand growth driving previous cycles may be moderating. This slower population growth combined with a still-modest vacancy rate suggests the market is approaching equilibrium rather than experiencing supply constraints that typically drive rental appreciation.
The investment thesis hinges on whether Salt Lake City can maintain current rental economics without significant home price depreciation as growth normalizes. The 5.1% yield provides a reasonable cushion, but investors should monitor whether the combination of slower population growth, moderate home price levels, and the city's aging millennial demographic cohort (who dominated the previous growth wave) sustains rental demand through the next economic cycle. The next 12-24 months will be critical in determining whether this market represents stable, mid-tier income generation or an overextended market correcting from its pandemic-era appreciation spike.
What type of investment market is Salt Lake City?
Salt Lake City features strong population growth that may drive property values higher over time. Current rental yields are modest, so returns are more dependent on price appreciation than immediate rental income.
✓ Strengths
- •Superior gross rental yield at 5.1% provides income cushion uncommon in Western markets and meaningful positive cash flow on leveraged purchases
- •Diversified employment base across technology, healthcare (University of Utah Hospital), finance, and outdoor recreation reduces economic concentration risk
- •University of Utah's 32,000+ student population and associated graduate programs create reliable tenant demand for multi-family and single-family rental properties
- •Healthy 4.8% vacancy rate indicates balanced supply-demand dynamics with room for rent appreciation without triggering oversupply conditions
! Risks
- •Decelerating 1.1% five-year population growth suggests the prior rapid migration wave has stalled, potentially limiting future rent growth and tenant demand expansion
- •Median home price of $450,000 combined with slow population growth may indicate market already priced in optimistic growth expectations that are unlikely to materialize
- •Winter weather severity and inversion episodes create seasonal tenant churn risk and may limit appeal to transplants from warmer climates, constraining the talent pipeline
- •Limited rent growth runway given already-elevated yields suggest most appreciation benefits were realized in 2020-2023; future returns dependent primarily on income rather than property appreciation
Key Metrics
How does Salt Lake City compare to nearby cities?
Salt Lake City vs Denver: 0.9 percentage point difference in gross yield.
| City | Median Price | Median Rent | Gross Yield | Pop. Growth |
|---|---|---|---|---|
| Denver, CO | $540,000 | $1,900 | 4.2% | +0.7% |
| Boise, ID | $390,000 | $1,750 | 5.4% | +2.2% |
| Las Vegas, NV | $380,000 | $1,750 | 5.5% | +1.4% |
| Phoenix, AZ | $380,000 | $1,700 | 5.4% | +1.9% |
| Portland, OR | $480,000 | $2,000 | 5% | +0.1% |
Investor Takeaway
Salt Lake City suits income-focused investors seeking stable cash flow generation over appreciation, particularly those comfortable with 5-7 year hold periods and monthly positive cash flow as the primary return driver rather than equity buildup. A buy-and-hold strategy targeting well-maintained properties near the University of Utah or in emerging tech corridors (Sugar House, East Bench) capitalizes on institutional tenant demand while the 5.1% yield cushions against the slower growth environment. The critical metric to monitor is whether the population growth rate stabilizes above 1% annually over the next 24 months—if growth dips below 0.5%, the market risks entering a deflationary cycle where yields compress and appreciation turns negative, making new entry points significantly more risky despite current yields appearing attractive.
Common questions about investing in Salt Lake City
Is rental investing profitable in Salt Lake City?▾
What is the average rental yield in Salt Lake City?▾
How does Salt Lake City compare to Denver for investors?▾
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