Is Palo Alto, CA a good place to invest in rental property?

Palo Alto, CA has a median modeled monthly cash flow of $-13,934 and a median cap rate of 0.5%, on a median sold price of $3,411,500. Prices changed +2.0% year over year.

What is the average cap rate in Palo Alto, CA?

The median cap rate across recently sold homes in Palo Alto, CA is 0.5%, based on CashFlowRE's rent and expense modeling.

What is the median home price in Palo Alto, CA?

The median sold price in Palo Alto, CA is $3,411,500 (about $1,894 per square foot).

Investing in Palo Alto, CA Real Estate

A data-driven snapshot of the Palo Alto, CA rental-property market, built from recently sold homes and CashFlowRE's per-listing investment modeling — median price, cap rate, monthly cash flow, appreciation and inventory — so you can judge the market before you ever open a listing.

$3,411,500Median sold price

$1,894Median $/sqft

0.5%Median cap rate

$-13,934Modeled cash flow / mo

+2.0%Appreciation YoY

5.3Months of supply

244Active listings

550Sold (last 12 mo)

What the Palo Alto numbers say

In Palo Alto, CA, the median home sold for $3,411,500 (about $1,894 per square foot), and the typical deal models out to a 0.5% cap rate with a median $-13,934 of monthly cash flow. Sold prices moved +2.0% over the past year. Inventory sits at about 5.3 months of supply. These are medians across recorded sales; individual properties vary widely, which is exactly what CashFlowRE scores listing by listing.

Other California markets to compare

See Palo Alto cash-flowing listings

CashFlowRE ranks every for-sale home in Palo Alto, CA by cap rate, cash-on-cash return, DSCR and monthly cash flow — so the best rental deals rise to the top. Create a free account to screen Palo Alto deals, or browse the national market data.