Compton
Investment Analysis

Compton, CA
Investor Report

Comprehensive real estate investment analysis with cap rates, rental yields, and risk assessment.

Share:
33
Investment Score
Buy
Cap Rate (Est.)
2.5%
Gross Yield
4.2%
P/R Ratio
18.4x
YoY Growth
-1.7%
Median Home Price
$637,500
Average Rent (1BR)
$2,252/mo
Median Income
$69,965
Population
91,004

Investment Breakdown

45
Value Score
33
Growth Score
11
Safety Score
35
Afford Score

Compton has a price-to-rent ratio of 18.4x, which indicates buying is moderately favorable.

The estimated cap rate of 2.5% is below average, typical of appreciation-focused markets.

Year-over-year price growth of -1.7% suggests a cooling market.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $2,252
Annual Gross $27,024

Est. Monthly Expenses

Property Tax (~1.5%) -$797
Insurance (~0.5%) -$266
Maintenance (~1%) -$531
Est. Net Cash Flow $658/mo

Price Forecast 2026โ€“2028

๐Ÿ”ฎ Compton Price Forecast 2026โ€“2028

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$624K2027$664Kโ–ฒ 6.4%2028$686Kโ–ฒ 10.0%20232024Now
$721K$540K
Current
$638K
2026
Projected
$664K
โ†‘ 6.4% by 2027
Projected
$686K
โ†‘ 10.0% by 2028
5yr CAGR:+4.6%
Confidence:Moderate
Rยฒ:0.80
โ–ผ

When evaluating the Compton housing market forecast for 2026-2028, the data suggests a period of consolidation rather than dramatic shifts. The current median home price of $623,824 and a recent YoY price change of -0.8% indicate that the rapid appreciation seen in previous years is cooling off. With a price-to-rent ratio of 20.5xโ€”above the national average of 18xโ€”buying remains a significant financial hurdle compared to renting, which is reflected in the market's "RENT" verdict. However, the 5-year price change of 26.3% demonstrates strong underlying demand, and the Risk Grade of A- suggests the area remains fundamentally sound for long-term investors despite short-term volatility.

Local economic factors, including ongoing infrastructure investments and the expansion of logistics hubs near the Port of Los Angeles, will likely support the market, preventing any drastic declines. For those asking will Compton home prices drop significantly, the current data doesn't support a crash narrative; instead, expect modest fluctuations as affordability constraints temper buyer enthusiasm. Days on market averaging 37 days indicates homes are still moving at a healthy pace, though not with the frenzy of prior years. By Compton real estate Compton 2027, the market should stabilize, with growth driven by relative affordability compared to neighboring areas. Overall, the forecast points to a balanced environment where appreciation slows to a sustainable CAGR near 4.7%, making it a steady, if not spectacular, period for homeowners and investors alike.

Projected Cap Rate (2027)
2.5%
5yr CAGR
+4.6%

Job Market

Unemployment 5.2%
National avg: 3.7%
Job Growth (YoY) +1.5%

Healthcare

78
Score
Good

Risk Factors

High Crime Area
Declining Prices

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 99.8%
Months Supply 3.7
Price Drops 10%
Gone in 2 Wks 16%

Market Position

Affordability Average
Safety Higher Risk

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Compton.

Total ROI
-121%
on $127,500 invested
Annual ROI
NaN%
compounded
Total Return
-$154,725
appreciation + cashflow
Mo. Cash Flow
-$2,779
year 1 estimate
Equity Growth Over 5 Years
Y1133kY2138kY3144kY4151kY5157k
Appreciation
$0
Cash Flow
-$154,725
Final Equity
$157,387

* Estimates based on 0.0% annual appreciation, 3% rent growth, 5% vacancy. Does not include closing costs, tax benefits, or capital gains tax. For illustrative purposes only.

Rental Investment Calculator Estimate your monthly cashflow

Rental Income Estimator

Pre-filled for Compton

Property

Purchase Price$637,500
Monthly Rent$2,252
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$2,378
Monthly Cash Flow
-$28,535/ year
-22.4%
Cash-on-Cash
1.6%
Cap Rate

Monthly Breakdown

+ Rental Income$2,252
โˆ’ Mortgage (P&I)$3,224
โˆ’ Property Tax$638
โˆ’ Insurance$125
โˆ’ Maintenance$531
โˆ’ Vacancy Loss$113
= Net Cash Flow-$2,378

Investment Summary

Down Payment
$127,500
Loan Amount
$510,000
Total Monthly Expenses
$4,630
Gross Yield
4.2%

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with qualified professionals. Data sources include Zillow, Census Bureau, and BLS. Cap rates and yields are estimates based on available data.

Last updated: March 2026