A cost segregation study usually costs between about $2,000 and $15,000. Small rentals and short-term rentals often fall in the $2,000 to $6,000 range. Larger commercial buildings with full engineering site visits cost more. Most investors look for tax savings of at least 5 to 10 times the fee.
This content is not tax or financial advice for you. Please talk with a CPA to find what's right for your situation.
Why people search "cost of segregation"
If you typed "cost of segregation" into Google, you were most likely asking what a cost segregation study costs. That's what this guide covers: typical prices, what drives them up or down, and how to judge whether the fee is worth it.
Typical price ranges in 2026
Prices vary by provider and region, so treat these as ballpark figures, not quotes.
| Property type | Typical fee range | Notes |
|---|---|---|
| Single-family or short-term rental | $2,000 – $6,000 | Often done with a virtual tour or remote analysis |
| Small multifamily (2–20 units) | $4,000 – $9,000 | Depends on unit count and documents available |
| Mid-size commercial (office, retail, medical) | $6,000 – $15,000 | Usually includes an on-site engineering visit |
| Large or complex properties (hotels, industrial, new construction) | $10,000 – $30,000+ | More components, more records to review |
| Software or "desktop" reports | Under $1,000 – $2,000 | Lower cost, less detail, higher audit risk |
What drives the price up or down?
- Property size and complexity. A 200-unit apartment complex has far more components than a duplex.
- Site visit. An in-person engineering inspection costs more than a remote review, but it creates stronger documentation.
- Available records. Detailed construction cost records make the work easier. Without them, the provider must estimate costs.
- Look-back work. If the property was bought years ago, the study may include extra calculations for Form 3115.
- Add-ons. Some fees include audit support, Form 3115 preparation, or partial asset disposition analysis. Others charge extra.
How to tell if a study pays for itself
A quick rule many investors use: compare the first-year tax savings to the fee.
Here's a simple example:
- Building value (not land): $600,000
- Study reclassifies 25%: $150,000
- With 100% bonus depreciation, about $150,000 is deducted in year one
- At a 32% tax rate, that's about $48,000 in tax savings
- Study fee: $5,000
That's nearly a 10-to-1 return in the first year. If the same study saved only $8,000, the decision would be closer.
Keep in mind that cost segregation mostly delays taxes rather than erasing them. When you sell, some of those deductions may be taxed back through depreciation recapture. The value comes from keeping more cash now, which you can reinvest.
Watch out for these pricing red flags
- Fees based on a percentage of your tax savings. This creates an incentive to be aggressive. A flat fee is the norm for quality work.
- Prices that seem too good to be true. Very cheap reports may skip the detail the IRS expects in its Cost Segregation Audit Techniques Guide.
- No clear scope. Ask exactly what's included: site visit, Form 3115 help, and audit defense.
Frequently asked questions
Is the cost segregation fee tax-deductible?
Do providers offer free estimates?
Is a cheaper study good enough for a small rental?
When is a study not worth the cost?
See what your property may qualify for
Run our 2-minute STR Qualification Quiz or model your Low / Mid / High cost segregation range.
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Read guideThis content is not tax or financial advice for you. Please talk with a CPA to find what's right for your situation.