Updated 2026 · Based on median market data for Cape Girardeau, MO
The effective property tax rate in Cape Girardeau, MO is 1.25%. On the median home price of $225,000, that's an annual tax bill of approximately $2,813 — or $234/mo. This is roughly in line with the national average.
Property taxes consume 23.2% of gross rental income in Cape Girardeau. At over 20% of gross rent, taxes are the single largest operating expense and can make or break a deal. Conservative underwriting is essential. Without property taxes, the cap rate would be 4.26% — the 1.25% tax rate reduces it to 3.01%, a drag of 1.25 percentage points.
Property tax bills are based on assessed value, which may differ from market value. In many jurisdictions, assessed values lag behind market prices, meaning your actual tax bill after purchase could increase once the property is reassessed. In MO, check whether purchases trigger automatic reassessment — if so, budget for taxes based on your purchase price, not the seller's current bill. Also investigate whether MO offers any homestead exemptions that landlords would NOT qualify for, as this could increase your effective rate.
In high-tax markets like Cape Girardeau, consider: (1) appealing your assessment if the property is over-valued, (2) purchasing below market value through off-market deals, which can lock in a lower assessed value, (3) factoring tax increases into your rent escalation clauses, and (4) comparing properties in adjacent jurisdictions where rates may differ.
Cape Girardeau vs Missouri state average and national average across key investment metrics. Cape Girardeau's cap rate is below both benchmarks — deal sourcing is critical here.