Updated 2026 · Based on median market data for Baton Rouge, LA
The median monthly rent in Baton Rouge, LA is $1,350, translating to $16,200 in annual gross rental income per unit. The rent-to-price ratio is 0.56% — well below the 1% rule, making pure cash flow investing challenging at median prices and requiring investors to target below-median purchases or value-add strategies. For context, a 0.56% rent-to-price ratio means that for every $100,000 invested in property, you collect approximately $563/mo in gross rent. The gross rent multiplier of 14.8x means it takes 14.8 years of gross rent to equal the purchase price — a moderate ratio typical of balanced markets.
Renters in Baton Rouge spend approximately 34% of the local median household income ($48,200) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting deep rental demand. Landlords should be cautious about aggressive rent increases and focus instead on tenant retention to minimize costly turnover.
The vacancy rate in Baton Rouge is 6.5%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Budget for one month of vacancy per year in your underwriting to be conservative. Population growth of 0.5% annually provides stable demand.
Baton Rouge's GRM (price divided by annual rent) is 14.8x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled and buy at or below the median to achieve strong returns. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x. To beat Baton Rouge's median GRM, target properties where you can achieve rents above $1,350 through renovations, better marketing, or targeting underserved tenant segments — or buy at a discount to the $240,000 median price. Every point lower on GRM translates to roughly 0.5-0.8% improvement in your cap rate.
At the median rent of $1,350/mo, a single-family rental in Baton Rouge generates approximately $16,200 in gross annual income. After accounting for 6.5% vacancy ($1,053 lost), property taxes of $1,344, insurance (~$960), and maintenance (~$960), the estimated NOI is $11,883 per year, or $990/mo. Adding an 8% management fee ($1,296/yr) reduces investor cash flow further. Before debt service, you are looking at approximately $10,587/yr in landlord net income. Whether this is attractive depends on your total capital invested — at a $48,000 down payment, the unlevered yield on equity from NOI alone is 24.8%.
Rent growth in Baton Rouge is driven by the interplay of population growth (0.5%), income growth, and housing supply constraints. With 0.5% population growth, organic rent growth will be slower — roughly 1.5% annually, taking rents from $1,350 to $1,454 over 5 years. The affordability headroom of $-145/mo between current rents and the 30% income threshold is essentially zero, meaning rent increases must be matched by income growth to avoid tenant turnover.
The median income of $48,200 supports a mixed tenant base of young professionals, small families, and long-term renters. The larger population base of 224,149 gives you a deeper tenant pool to draw from, reducing re-leasing time.
As a mid-sized market, Baton Rouge has property management options but less competition among PMs. Expect fees of 8-12% of collected rent. At $1,350/mo, budget $135/mo for management. Self-management makes sense if you are local, have fewer than 5 units, and the rent level justifies your time — at $1,350/mo, self-management of a small portfolio saves meaningful dollars but professional management becomes economical at 3-4 units.
Baton Rouge vs Louisiana state average and national average across key investment metrics. Baton Rouge beats the national average but trails the Louisiana average on cap rate.