Invest In Apartment Buildings In Rock Springs, WY

Where Rock Springs's Apartment Demand Comes From

Rock Springs's apartment demand starts with its 2,661 renter households, 27.6% of all occupied homes in the city (U.S. Census ACS 2020–2024). Between the two surveys, renter households increased 24.5%, well ahead of population growth of -0.8%. The rental market gained share as well as people.

The typical Rock Springs household earns $69,168 a year. The number of employed residents fell 3.5% over the same period, and unemployment stood at 5.2%. Rent has risen faster than income (5.7% versus -9.8%), so more tenants are stretched. Well-run older buildings that rent below new construction tend to hold up best in that setting.

Rock Springs leans toward ownership. Apartment buildings compete with single-family rentals for tenants, so we look closely at how a property's rents compare with nearby rental houses.

The Supply Picture In Rock Springs

Median gross rent in Rock Springs, WY is $928 a month, up 5.7% from $878 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's slower than the national trend. In a market like this, a business plan has to work on today's rents, not on big increases.

Rental vacancy is 11.3%, higher than we like to see. Before buying here, we'd want to know whether the empty units sit in a few older properties or across the whole market. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 42.9% of renters spend 30% or more of their income on housing. That is close to the national picture, where roughly half of renters do, so rent increases need to track local wage growth.

About 11.6% of homes in Rock Springs are in buildings with 5 or more units, roughly 1,237 homes. That count was down 1.5% over five years, so new apartment supply has been limited. The median home was built in 1981, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation.

How Rock Springs Ranks For Apartment Investors

Out of 6 Wyoming cities in our data, Rock Springs comes in 5th for median gross rent, 5th for renter share and 6th for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. In raw numbers, Rock Springs has about 192 fewer residents, 524 more renter households and 19 fewer homes in buildings with 5 or more units than in the 2015–2019 survey.

Rock Springs Compared With Wyoming

Rock Springs's median gross rent of $928 is below the Wyoming median of $992, and its renter share is 27.6% compared with 28.2% statewide.

Rock Springs Rent Affordability In Dollars

The median rent in Rock Springs works out to $11,136 a year, about 16.1% of the median household income of $69,168. Under the common 30% guideline, a household needs about $37,100 a year to cover that rent comfortably. That's close to the Wyoming figure of 15.6%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $50 a month ($600 a year), while median household income fell $7,515 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal.

Rock Springs Rental Market In Numbers

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Rock Springs, WY has 23,127 residents, down 0.8% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Rock Springs, WY is $69,168, down 9.8% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Rock Springs, WY is $928 a month, up 5.7% over five years (U.S. Census ACS 2020–2024).
• 27.6% of households in Rock Springs, WY rent, about 2,661 renter households (U.S. Census ACS 2020–2024).
• 11.6% of homes in Rock Springs, WY are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Rock Springs, WY is 11.3%, and 42.9% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Rock Springs, WY was built in 1981 (U.S. Census ACS 2020–2024).

What We Look For In A Rock Springs Apartment Building

Our buy box in Rock Springs is the same one we use nationwide: 5+ unit apartment buildings, stabilized or in need of work, priced on today's rents. Then we test the property against the local data on this page and a full inspection of its major systems.

Wyoming has no state income tax on wages, and property taxes are often one of the largest expenses for apartment owners. We underwrite the tax bill after purchase, not the seller's current bill, since a sale often resets the assessment. Wyoming has no statewide rent control law, though local rules on notices, fees and deposits still apply. We get an insurance quote before we make an offer, because premiums have risen in most states.

With vacancy on the high side, we budget for longer lease-ups and look for buildings whose occupancy is already above the market average.

Due Diligence For Apartment Syndications In Rock Springs

Before you invest in an apartment syndication in Rock Springs, with us or anyone else, the local data points to a few questions worth asking.

• What vacancy does the plan assume? Rental vacancy in Rock Springs is 11.3%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 5.7% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• How big is the repair reserve? The median home in Rock Springs was built in 1981, and even newer buildings need money set aside for roofs, HVAC and appliances.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Rock Springs Apartment Syndication Works

Here's the short version. The general partner, in this case Skyline, finds an apartment building in Rock Springs, buys it with a loan and investor capital, and runs it. Limited partners supply part of that capital and hold an ownership share, without landlord duties or personal liability for the loan.

Syndications are long-term and illiquid, and capital usually stays committed for several years. Results are never certain. Most offerings are limited to accredited investors, and the rules depend on whether a deal uses Rule 506(b) or Rule 506(c). See investing with Skyline Capital for how we work with limited partners.

Getting Started

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