Gulfport is a budget-friendly market in the South with a smaller market with 74,000 residents. At a 5.72% estimated cap rate, this is a solid market where rents of $1,420/mo lag behind home prices. With a median home price of $220,000 and population is roughly stable, Gulfport 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
Gulfport's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $220,000, the $1,420/mo rent produces only $1,049/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($44K at 7%) would result in approximately $-121/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 12.9x gross rent multiplier and 7% vacancy rate position Gulfport as a value-oriented market. With annual appreciation at 2%, total returns (cash flow + equity growth) run approximately 7.7% before financing leverage.
All figures below are computed from Gulfport's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
At 0.68% effective rate on the $220,000 median price, the annual tax bill is $1,496 — that's below national average (-36% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
If Gulfport continues appreciating at 2%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $220K | $1,420 | 5.7% |
| Year 1 | $224K | $1,463 | 5.8% |
| Year 2 | $229K | $1,506 | 5.8% |
| Year 3 | $233K | $1,552 | 5.9% |
| Year 4 | $238K | $1,598 | 6.0% |
| Year 5 | $243K | $1,646 | 6.0% |
Same median-priced Gulfport property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $220K | $1,049 | $12,591 | 5.7% |
| 20% down conventional @ 7% | $51K | $-121 | $-1,454 | -2.9% |
| 25% down DSCR @ 8.5% | $64K | $-220 | $-2,635 | -4.1% |
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $165K | $1,207 | $9,371 | 5.7% | $781 |
| At median | $220K | $1,420 | $10,745 | 4.9% | $895 |
| Above median (~125% price) | $275K | $1,633 | $12,119 | 4.4% | $1,010 |
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Gulfport's historical appreciation rate of 2%:
On a $44K down payment, that's a 65.5% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Automated checks against the underlying data — surface only the risks that actually apply to Gulfport, not generic boilerplate:
Pre-filled with Gulfport medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Gulfport.
Gulfport, MS has a population of 74,000 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $220,000 paired with median rents of $1,420/mo produces an estimated cap rate of 5.72%.
Property taxes at 0.68% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 7% runs above average, which increases cash flow volatility and warrants conservative underwriting.
At a price-to-income ratio of 5.1x, homes cost about 5.1 times the local median income of $42,800. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Gulfport presents moderate opportunities. Cap rates near 5.72% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.