Davis County

Davis County sits at a 2.49% cap rate on a $553,103 median purchase price with monthly rent of $1,763. The gross rent-to-price ratio of 3.82% barely covers the cost of financing, and the modeled cash flow at 6.85% interest confirms the math: negative $1,754 per month on a 20% down payment, producing a cash-on-cash return of negative 16.55%. Those numbers place Davis firmly in appreciation territory. The county's appreciation score of 73 out of 100 reflects that orientation, while the cash flow score of 27 confirms the yield side is weak. Home prices rose 2.3% year-over-year, modest in absolute terms but consistent with a market where the primary return driver is equity accumulation, not income.

This market does not work for a cash-flow buyer at current prices and rates. The negative carry is too severe to offset with operational improvements alone, and the 21 affordability index score means there is no obvious rent pop waiting in the near term to rescue the yield. The investor Davis County does suit is one with a long hold horizon who wants exposure to the Wasatch Front at a slight discount to Salt Lake County's median ($553,103 versus $558,754 next door), with the patience to let appreciation and amortization do the work. A value-add operator would need a meaningful basis reduction, well below median, to generate even breakeven cash flow, because the $617 in estimated monthly expenses plus a $2,899 mortgage payment leaves essentially no margin at market rents. If you are underwriting a BRRRR or distressed acquisition, the ceiling is tight: you would need to acquire roughly 25-30% below the median just to approach neutral cash flow, and even then stabilized rents would need to hold.

The combined monthly tax and insurance load on a median-priced property here is $378, which is actually a tailwind relative to many comparable markets. Utah's state-average effective property tax rate of 0.63% is low, which the tax data flags as a favorable underwriting condition. Keep in mind this is a state-average estimate and actual Davis County or township-level assessments may differ, so verify with the county assessor before closing, but directionally the tax burden is a line item that helps rather than hurts. Annual property taxes on the median purchase run approximately $3,485 and insurance approximately $1,051, so the combined carry on those two items is manageable. The problem is not taxes or insurance; it is the spread between rates and rents.

The concentration risk in Davis County is real and worth naming. The county's population of 363,032 is heavily tied to the Wasatch Front economic corridor, and any sustained softness in the broader Salt Lake metro job market would affect rental demand here. The stability score of 50 out of 100 is not alarming, but it is not a vote of confidence either. No regulatory or vacancy data is provided to flag, so the underwriting risks are primarily macroeconomic: rate sensitivity on a negatively leveraged asset, and the probability that 2.3% annual appreciation is insufficient to offset negative cash flow in a hold shorter than five to seven years.

Relative to neighbors, Davis is a mixed picture. Salt Lake County has a nearly identical median home price ($558,754) but a lower rent-to-price ratio of 3.45% and a slightly higher overall score of 45. Neither county pencils for cash flow, but Salt Lake offers deeper liquidity and a broader buyer pool at exit. Washington County, at $522,143 median with a 4.34% rent-to-price ratio, is the clearest cash-flow comparison: better yield metrics, lower basis, and a 41 overall score that still trails Davis's 43. Cache County scores 48 overall, the highest in this peer group, with a median price of $454,811 and a rent-to-price ratio of 3.95%, offering a lower entry point and marginally better yield than Davis. Summit County at $1.28 million median and a 3.33% rent-to-price ratio is a different asset class entirely. Choose Davis over its neighbors when your thesis is specifically Wasatch Front appreciation exposure with relatively low property tax drag, you want population scale (363,032), and you can absorb negative cash flow. If yield or a lower buy-in matters, Cache County or Washington County deserve a harder look first.