Clayton County prices a median home at $228,408 against median rent of $1,552, producing a gross rent-to-price ratio of 8.15%. That is a notably high ratio, and the model caps it at 5.3%, which lands above the threshold most investors treat as a floor for unlevered returns. The cash-flow score of 82 out of 100 confirms what the ratio implies: Clayton is one of the better-positioned markets in this dataset for operating income relative to purchase price. The flip side is equally clear. Home prices are down 5.5% year-over-year, the appreciation score sits at 14 out of 100, and the overall score of 54 places Clayton at the 36th national percentile. This is not a price-growth market, and the data do not support treating it as one.
The levered picture is more complicated. At a 6.85% note rate on an 80% loan, the model's base-case cash flow is negative $188 per month, with a cash-on-cash return of -4.29%. That gap between a 5.3% cap rate and a 6.85% borrowing cost is the entire story for a financed buyer right now: leverage is working against you, not for you. An all-cash buyer capturing that 5.3% cap on a $228,000 asset is in a very different position. Value-add operators who can push rents above the $1,552 median, or investors buying below the median price, are the two profiles most likely to make the numbers work with financing. A straight buy-at-median, finance-at-market-rate strategy does not pencil in this model.
Combined monthly property tax and insurance on the median asset runs $244, based on a 0.92% state-average effective tax rate and a 0.36% insurance rate. Georgia's 0.92% rate is in normal territory, not a meaningful headwind compared to high-tax states, and it is already embedded in the $543 estimated monthly expenses the model uses. One honest caveat: the 0.92% is a state-average estimate from Tax Foundation 2024 data, and actual Clayton County or township-level assessments may differ, so pull the county assessor's bill on any specific address before finalizing your underwrite.
The affordability index of 69 and a median household income of $56,207 describe a working-class renter base. The market's 296,000-person population is large enough to provide deal flow and tenant depth, but a $56,207 median income also caps what the rental pool can sustain in rent growth. Investors underwriting to aggressive rent increases over a 3-to-5-year hold should stress-test those assumptions against actual tenant income capacity. A median rent of $1,552 already represents roughly 33% of median household income at current income levels, which historically is close to a practical ceiling for a market at this income tier.
The appreciation score of 14 and the -5.5% year-over-year price movement are the primary risk flags here. Price declines can be cyclical or structural. The data provided do not specify the driver, but a buyer banking on equity appreciation to compensate for negative carry is taking on two risks simultaneously: continued softness in values, and ongoing cash drain. A stability score of 50 out of 100 suggests the market is neither particularly safe nor particularly volatile, but it does not offer the cushion that would make a speculative appreciation thesis comfortable. Concentration risk is also worth noting: a market at the 36th national percentile with a below-average income base and no strong appreciation trend is more exposed to localized demand softness than a more diversified metro.
Among the provided neighbors, Clayton has the lowest median home price by a significant margin. Rockdale County sits at $299,702 with a rent-to-price ratio of 7.05%, Walton County at $382,605 with a 6.05% ratio, and Catoosa County at $288,372 with a 5.37% ratio. Clayton's 8.15% ratio is the highest in the group, and it posts the same overall score of 54 as Rockdale despite being $71,000 cheaper per median home. For a cash-flow-focused buyer who wants to deploy less capital per door and maximize gross yield, Clayton is the clear choice over every neighbor in this dataset. For an investor prioritizing price stability or appreciation potential, the data do not favor Clayton over Heard County (overall score 55) or Walton County (overall score 55), even though both carry higher entry prices. Choose Clayton when yield per dollar deployed is your primary metric and you are willing to accept that the exit price may not be materially higher than your entry.
| Scenario | Purchase price | Monthly cash flow | Cap rate | Cash-on-cash |
|---|---|---|---|---|
75% of median value-add or distressed | $171,306 | +$111/mo | 7.1% | +3.4% |
Median typical MLS deal | $228,408 | -$188/mo | 5.3% | -4.3% |
125% of median newer / premium | $285,510 | -$488/mo | 4.2% | -8.9% |
Historical data from Zillow ZHVI/ZORI
* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.
Based on 8.15% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.
Based on -5.5% YoY price growth. Moderate growth (3-8%) scores highest.
Population data not available.
Price-to-income ratio of 4.1x. Lower ratios indicate more affordable markets.
Scores are calculated using real Zillow home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. Markets with missing rent data use estimated values based on regional averages.
Clayton County in Georgia scores 54/100, ranking #482 of 1,000 US counties (top 64%). At 20% down and current rates, a median-priced rental loses about $188/month; the 8.15% gross rent-to-price ratio doesn't survive debt service. The thesis here is appreciation, value-add, house hacking, or all-cash.
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