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Baton Rouge vs New Orleans for Rental Property Investing

Side-by-side comparison of Baton Rouge, LA and New Orleans, LA — cap rates, rent, prices, and investment metrics.

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New Orleans wins 6–1 across key metrics
New Orleans leads on cash flow (5.62% vs 4.95% cap rate) · Baton Rouge leads on population growth
Metric
Baton Rouge, LA
New Orleans, LA
Est. Cap Rate
4.95%
5.62%
Median Home Price
$240,000
$255,000
Median Monthly Rent
$1,350
$1,580
1% Rule
0.56%
0.62%
GRM
14.8x
13.4x
Price / Income
5.0x
5.6x
Property Tax Rate
0.56%
0.55%
Vacancy Rate
6.5%
6.2%
Population Growth
0.5% / yr
0.4% / yr
Annual Appreciation
2.3%
2.6%
Population
224,149
376,971
Median Income
$48,200
$45,200

Baton Rouge vs New Orleans: Which Is Better for Investors?

Cash flow: New Orleans has the edge with an estimated cap rate of 5.62% compared to Baton Rouge's 4.95%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $240,000 in Baton Rouge vs $255,000 in New Orleans, while rents come in at $1,350/mo and $1,580/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Baton Rouge is growing faster at 0.5% annually vs New Orleans's 0.4%. New Orleans leads on home value appreciation at 2.6% per year.

Costs & risk: Property taxes are 0.56% in Baton Rouge vs 0.55% in New Orleans. Vacancy rates of 6.5% and 6.2% are mixed — New Orleans has the tighter rental market.

Entry point: Baton Rouge offers a lower entry at $240K vs New Orleans's $255K — a difference of $15K. With a 20% down payment, that's $48K vs $51K. New Orleans's higher price may be justified by better market fundamentals.

Bottom line: New Orleans edges out Baton Rouge on most key metrics. With a 5.62% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Baton Rouge or New Orleans.

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Baton Rouge, LA
4.95% cap rate · $240,000 median · $1,350/mo
Full analysis →
New Orleans, LA
5.62% cap rate · $255,000 median · $1,580/mo
Full analysis →

Frequently Asked Questions

Is Baton Rouge or New Orleans better for rental investing?
New Orleans wins 6–1 across our 7 key metrics. New Orleans's 5.62% cap rate and $255K median price give it the edge overall.
What is the cap rate difference between Baton Rouge and New Orleans?
Baton Rouge has a 4.95% cap rate vs New Orleans's 5.62% — a difference of 0.67 percentage points. This is a relatively small difference — other factors like growth, taxes, and local market conditions may matter more. For context, the national average is 3.81%.
Which city has lower property taxes?
New Orleans has lower property taxes at 0.55% vs 0.56%. On a $248K property, that's a difference of approximately $59/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Baton Rouge is growing at 0.5% annually vs New Orleans's 0.4%. Both cities have slow growth — focus on the strongest neighborhoods. Baton Rouge's appreciation rate of 2.3% also trails on home value growth.

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