Columbus, MS Cap Rate: 6.81% — Rental Property Analysis
Columbus is a budget-friendly market in the South with a small but investable metro of 50,000. At a 6.81% estimated cap rate, this is a solid market where rents of $1,340/mo lag behind home prices. With a median home price of $180,000 and population is roughly stable, Columbus stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
◉
Strong investment fundamentals
Based on $180,000 median price and $1,340/mo median rent
Est. Cap Rate
6.81%
1% Rule
0.74%
Fails
GRM
11.2x
Price / Income
4.6x
Market Data
Median Home Price$180,000
Median Monthly Rent$1,340
Property Tax Rate0.66%
Population50,000
Population Growth0.2% / yr
Median Household Income$39,333
Vacancy Rate7.4%
Annual Appreciation1.8%
2026 Market Update: Columbus
Columbus's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $180,000, the $1,340/mo rent produces only $1,022/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
On a conventional loan with 20% down ($36K) at 7%, estimated monthly cash flow is $64 — a thin 2.1% cash-on-cash return. Investors should negotiate below asking price or target properties with above-median rents to build a meaningful cash flow buffer.
The 11.2x gross rent multiplier and 7.4% vacancy rate position Columbus as a value-oriented market. With annual appreciation at 1.8%, total returns (cash flow + equity growth) run approximately 8.6% before financing leverage.
Cap Rate Calculator — Columbus
Pre-filled with Columbus medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.66% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
5.61%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$10,090
net operating income
Gross Rent Multiplier
11.2x
Good (<15)
1% Rule
0.74%
✗ Fails
Monthly Cash Flow
$841
before debt service
Annual Breakdown
Gross Rental Income$16,080
Less Vacancy−$1,190
Effective Income$14,890
Less Operating Expenses−$4,800
Net Operating Income$10,090
Sponsored
Analyze Deals Faster with DealCheck
Import any property, get instant investment analysis — cap rates, cash flow, rehab estimates, and offer calculations. Used by 350,000+ investors.
Factor in financing to see your actual return on invested capital in Columbus.
$
$45,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-2.45%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$50,400
$45,000 down + $5,400 closing
Monthly Mortgage
$880
on $135K loan
Monthly Cash Flow
$-103
after all expenses
Annual Cash Flow
$-1,237
before taxes
Cash Flow Breakdown
Monthly Rent$1,340
Less Expenses−$563
Less Mortgage−$880
Monthly Cash Flow$-103
Is Columbus a Good Place to Invest in Rental Property?
Columbus, MS has a population of 50,000 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $180,000 paired with median rents of $1,340/mo produces an estimated cap rate of 6.81%.
Property taxes at 0.66% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 7.4% runs above average, which increases cash flow volatility and warrants conservative underwriting.
At a price-to-income ratio of 4.6x, homes cost about 4.6 times the local median income of $39,333. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 1.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Columbus offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.
Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.