Average capitalization rate in Fargo, North Dakota, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in Fargo

MedianMeanMode
7.5%
From 65,575 homes
7.7%
From 65,575 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for communities in Fargo

LocationMedianMeanMode
Amber Valley
8.7%
From 320 homes
8.7%
From 320 homes
-
Anderson Park
6.7%
From 1,685 homes
6.6%
From 1,685 homes
-
Bennett
7.0%
From 1,569 homes
6.8%
From 1,569 homes
-
Bluemont Lakes
7.4%
From 2,085 homes
7.2%
From 2,085 homes
-
Brandt Crossing
7.0%
From 2,819 homes
6.8%
From 2,819 homes
-
Brunsdale
10.3%
From 3,955 homes
10.1%
From 3,955 homes
-
Centennial
5.4%
From 1,015 homes
5.7%
From 1,015 homes
-
Clara Barton
7.5%
From 1,056 homes
7.3%
From 1,056 homes
-
Davies
6.1%
From 2,330 homes
6.1%
From 2,330 homes
-
Deer Creek
7.5%
From 857 homes
7.3%
From 857 homes
-

All communities in Fargo