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Buy a rental in Payson, Utah: current rents, cap rates, which neighborhoods actually cash flow, and what management costs.
Ondo pairs neighborhood-level pricing, prep, and negotiation support with the realities of a $400K median home market in Payson.
Nearby Coverage
Payson's rental market presents a compelling investment opportunity. With a median home price of $400,000 and median rent of $1,400/month, the gross rent multiplier sits at approximately 23.8×, meaning the purchase price represents roughly 23.8 years of gross rental income. Population growth of 2.5% annually, driven by employers like Nebo School District and Payson City, supports sustained rental demand. With 30% of Payson households renting, the tenant pool is established and active. We help investors identify properties that generate positive cash flow from day one and build long-term equity in Payson's appreciating market.
Payson combines small-town heritage with easy I-15 access to the rest of Utah County. Morning commutes head north toward Spanish Fork and Provo. Onion Days in September is the beloved community celebration with a parade, harvest-themed events, and the whole town gathering at the park. Payson Canyon and the Nebo Loop scenic drive are the weekend recreation anchors, fall drives through the aspens are a local tradition. Downtown Main Street has a barbershop, a cafe, and local businesses that longtime residents support fiercely. The Peteetneet Academy museum hosts community events and classes. Nebo School District zoning and the city park system are local amenities. The pace is slower than north Utah County.
Median Home Price
$400K
Median Rent
$1,400/mo
Population
22,000
Annual Growth
2.5%
Avg Days on Market
24
Owner-Occupied
70%
Ondo city medians as of Aug 2026 — verify. Not an MLS pull, appraisal, BPO, or CMA. Population and annual growth are approximate and are not tied to a named public source here. Check the U.S. Census Bureau for official figures.
We define your target returns, budget, preferred property type, and management expectations. Whether you're buying your first rental or adding to a portfolio, we tailor the search to your investment thesis.
For every property we present, you get a cash flow analysis including purchase price, down payment, financing costs, projected rent, operating expenses (vacancy, maintenance, insurance, taxes, management), and net yield. No surprises.
Once you close, our property management team takes over: marketing, tenant placement, rent collection, maintenance, and reporting. You get passive income without the daily operational burden.
School District: Nebo School District
Notable schools: Payson High School, Payson Junior High, Wilson Elementary
Historic south Utah County town at the mouth of Payson Canyon with roots in agriculture and the annual Onion Days festival.
Outdoor Activities
Local Landmarks
Returns vary by property, financing, and management approach. In the current market, cash-on-cash returns for a well-purchased rental property typically range from 4–8% before appreciation. Cap rates for single-family rentals generally run 4–6%. Total returns including appreciation, principal paydown, and tax benefits can exceed 12–15% annually. We provide property-specific pro forma analysis so you know exactly what to expect before making an offer.
Investment property loans typically require 15–25% down for a single-family rental and 25% for 2–4 unit properties. Some portfolio lenders offer 10% down for strong borrowers. DSCR (debt service coverage ratio) loans are available for investors who prefer to qualify based on the property's rental income rather than personal income. We help you structure financing that preserves capital for multiple acquisitions.
It depends on your time, proximity, and number of properties. Self-management saves the management fee (typically 8–10% of rent) but requires you to handle tenant calls, maintenance coordination, rent collection, and legal compliance. As your portfolio grows past 2–3 units, the time investment usually exceeds the management fee savings. Our property management service handles everything from day one.
A 1031 exchange lets you defer capital gains taxes when you sell an investment property and reinvest the proceeds into a like-kind replacement property. Strict timelines apply: 45 days to identify replacement properties and 180 days to close. We coordinate with qualified intermediaries and help you identify replacement properties that improve your portfolio's cash flow and appreciation potential.
Payson does not have a FrontRunner station. The nearest is Provo Central, and most residents drive north on I-15 to Spanish Fork, Provo, or Orem. Commute length is the main trade-off for Payson's lower housing costs, so it helps to market homes to tenants who already work in south Utah County or work remotely.
Payson's demand drivers include affordability (among Utah County's lowest home prices), I-15 access, Nebo School District schools, and community identity. Demand is dominated by households working in Provo/Orem or Spanish Fork who accept a 10–20 minute commute in exchange for lower housing costs. Some Salt Lake and Silicon Slopes workers also accept a longer drive in exchange for dramatically lower housing costs. As north Utah County prices continue to climb, spillover demand flows south to cities like Payson where the value proposition is compelling.
Nebo Loop is a 38-mile scenic byway that begins at Payson Canyon and winds through the Wasatch Range past Mount Nebo (Utah's tallest peak in the Wasatch Range). The drive offers alpine meadows, aspen groves, and panoramic views. For Payson residents, it's a direct-access recreational resource, camping, fishing, hiking, and fall foliage drives are all 10 minutes from town. This natural amenity gives Payson a lifestyle dimension that other affordable Utah County cities lack. Marketing rental properties with Nebo Loop proximity appeals to outdoor-enthusiast tenants and provides genuine differentiation.
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