Washington County

Washington County (St. George metro) sits at a gross rent-to-price ratio of 0.042, which translates to a 2.74% cap rate on a standard acquisition at the $525,000 median. At 6.85% financing, the math is straightforward and brutal: a 20% down payment leaves you with a $2,752 monthly mortgage, $647 in estimated expenses, and $1,847 in rent, producing negative $1,551 per month in cash flow and a cash-on-cash return of -15.41%. The affordability index sits at 25, the overall score ranks 757 out of 1,000 nationally (3rd percentile), and home prices are down 0.57% year-over-year. This is not a cash-flow market. It is not a deep-value market. What it is, based on the appreciation score of 47, is a market where investors are buying expected future price recovery, not current income.

That profile narrows the viable buyer type considerably. A cash-flow investor has nothing to work with here at current pricing and rates. The numbers do not close without a substantially below-market acquisition, a large equity buy-down, or a rate environment that looks meaningfully different from today's 6.85% assumption. A pure appreciation buyer who can carry negative $1,551 monthly from outside income might find the argument, given the county's relative ranking on appreciation (47) versus its cash-flow score (33) and its stability score (50), but they are accepting real capital at risk in exchange for a bet on price recovery that has not materialized yet, given the -0.57% YoY figure. The most credible use case is a value-add operator who can force equity through renovation, raise rents above the $1,848 median, and either refinance into better coverage or hold to a disposition at a higher price point. Even then, the entry cost at $525,000 leaves limited margin for error on an acquisition that needs both execution and patience.

The tax and insurance carry in Washington County is a legitimate tailwind worth building into your underwrite. The state-average effective property tax rate is 0.63%, flagged as low, with an annual tax burden of roughly $3,307 and annual insurance of $997, combining to $359 per month. That $359 combined figure is already embedded in the $647 expense estimate above, but it is worth isolating because it is genuinely low relative to most comparable-price markets nationally. Utah's 0.63% state-average rate is a real advantage compared to states running 1.5% to 2.2% on similar price points. As always, the caveat applies: this is a state-average estimate from Tax Foundation 2024 data, and actual rates at the county or township level in Washington County may differ from that figure. Verify the specific assessed value and mill rate before closing.

The concentration risk here is structural. Washington County is a single-metro market anchored almost entirely around the St. George area and its appeal as a retiree and second-home destination. That demand profile supports prices during expansions and low-rate environments, which explains the appreciation score relative to cash flow. It also explains the vulnerability: when rates rise and discretionary buyers pull back, as the -0.57% YoY decline suggests is happening, there is no dense employment base absorbing excess supply the way a diversified urban labor market would. The affordability index of 25 means the local income base is not keeping pace with prices, so organic household formation is not the demand driver, migration and lifestyle buyers are. That is a concentration of a different kind, one that is harder to underwrite through a spreadsheet.

Compared to the neighboring counties in the data, Washington is not the worst option on the table, but it also is not the best. Salt Lake County scores a 45 overall at a $559,000 median and a rent-to-price ratio of 0.035, which is actually lower than Washington's 0.042, but Salt Lake's diversified employment base makes the stability argument more defensible. Cache County is the most interesting comparison: $455,000 median, a 0.039 rent-to-price ratio, and an overall score of 48, the highest in this peer group. It is also the most affordable entry point among the comparables. Summit County at $1.28 million and a 0.033 rent-to-price ratio, and Wasatch County at $936,000 and 0.032, are both worse on yield with higher absolute capital requirements. Grand County at $579,000 lacks rent data in this set, making it ununderwritable from these inputs alone. If you are choosing between Washington and a neighbor, Cache County has a more defensible cash-flow profile at lower basis, and Salt Lake offers more demand diversification at a slightly higher price. Washington makes the most sense over those alternatives only if you have a specific asset with a defined value-add thesis and a clear view on the exit, not as a generic buy-and-hold at median pricing.