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Hammond vs Houma for Rental Property Investing

Side-by-side comparison of Hammond, LA and Houma, LA — cap rates, rent, prices, and investment metrics.

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Houma wins 3–0 across key metrics
Houma leads on cash flow (7.10% vs 5.33% cap rate) · Hammond leads on population growth
Metric
Hammond, LA
Houma, LA
Est. Cap Rate
5.33%
7.10%
Median Home Price
$220,000
$175,000
Median Monthly Rent
$1,310
$1,320
1% Rule
0.60%
0.75%
GRM
14.0x
11.0x
Price / Income
4.8x
3.8x
Property Tax Rate
0.54%
0.54%
Vacancy Rate
6.7%
6.7%
Population Growth
0.3% / yr
0.3% / yr
Annual Appreciation
2.1%
2.1%
Population
50,000
50,000
Median Income
$45,760
$45,760

Hammond vs Houma: Which Is Better for Investors?

Cash flow: Houma has the edge with an estimated cap rate of 7.10% compared to Hammond's 5.33%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $220,000 in Hammond vs $175,000 in Houma, while rents come in at $1,310/mo and $1,320/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Hammond is growing faster at 0.3% annually vs Houma's 0.3%. Hammond leads on home value appreciation at 2.1% per year.

Costs & risk: Property taxes are 0.54% in Hammond vs 0.54% in Houma. Vacancy rates of 6.7% and 6.7% are mixed — Houma has the tighter rental market.

Entry point: Houma offers a lower entry at $175K vs Hammond's $220K — a difference of $45K. With a 20% down payment, that's $35K vs $44K. Houma combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Houma edges out Hammond on most key metrics. With a 7.10% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Hammond or Houma.

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Hammond, LA
5.33% cap rate · $220,000 median · $1,310/mo
Full analysis →
Houma, LA
7.10% cap rate · $175,000 median · $1,320/mo
Full analysis →

Frequently Asked Questions

Is Hammond or Houma better for rental investing?
Houma wins 3–0 across our 7 key metrics. Houma's 7.10% cap rate and $175K median price give it the edge overall.
What is the cap rate difference between Hammond and Houma?
Hammond has a 5.33% cap rate vs Houma's 7.10% — a difference of 1.78 percentage points. This is a significant gap that meaningfully impacts cash flow. For context, the national average is 3.81%.
Which city has lower property taxes?
Houma has lower property taxes at 0.54% vs 0.54%. On a $198K property, that's a difference of approximately $243/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Hammond is growing at 0.3% annually vs Houma's 0.3%. Both cities have slow growth — focus on the strongest neighborhoods. Hammond's appreciation rate of 2.1% also leads on home value growth.

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