Fort Polk South, LA Cap Rate: 7.27% — Rental Property Analysis
Fort Polk South is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 7.27% estimated cap rate, this is a high-yield market where rents of $1,230/mo lag behind home prices. With a median home price of $160,000 and population is roughly stable, Fort Polk South 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
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Strong investment fundamentals
Based on $160,000 median price and $1,230/mo median rent
Est. Cap Rate
7.27%
1% Rule
0.77%
Fails
GRM
10.8x
Price / Income
3.5x
Market Data
Median Home Price$160,000
Median Monthly Rent$1,230
Property Tax Rate0.54%
Population50,000
Population Growth0.3% / yr
Median Household Income$45,760
Vacancy Rate6.7%
Annual Appreciation2.1%
2026 Market Update: Fort Polk South
Fort Polk South's 0.8% rent-to-price ratio is well below the 1% rule. At median prices of $160,000, the $1,230/mo rent produces only $969/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 ($32K) at 7%, estimated monthly cash flow is $118 — a thin 4.4% 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 10.8x gross rent multiplier and 6.7% vacancy rate position Fort Polk South as a value-oriented market. With annual appreciation at 2.1%, total returns (cash flow + equity growth) run approximately 9.4% before financing leverage.
Cap Rate Calculator — Fort Polk South
Pre-filled with Fort Polk South medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.54% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
6.01%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$9,619
net operating income
Gross Rent Multiplier
10.8x
Good (<15)
1% Rule
0.77%
✗ Fails
Monthly Cash Flow
$802
before debt service
Annual Breakdown
Gross Rental Income$14,760
Less Vacancy−$989
Effective Income$13,771
Less Operating Expenses−$4,152
Net Operating Income$9,619
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Factor in financing to see your actual return on invested capital in Fort Polk South.
$
$40,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-1.86%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$44,800
$40,000 down + $4,800 closing
Monthly Mortgage
$782
on $120K loan
Monthly Cash Flow
$-69
after all expenses
Annual Cash Flow
$-832
before taxes
Cash Flow Breakdown
Monthly Rent$1,230
Less Expenses−$517
Less Mortgage−$782
Monthly Cash Flow$-69
Is Fort Polk South a Good Place to Invest in Rental Property?
Fort Polk South, LA has a population of 50,000 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $160,000 paired with median rents of $1,230/mo produces an estimated cap rate of 7.27%.
Property taxes at 0.54% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.7% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.5x, homes cost about 3.5 times the local median income of $45,760. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Fort Polk South offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.
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