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Gulfport, MS Cap Rate: 5.72% — Rental Property Analysis

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

Moderate — source deals carefully
Based on $220,000 median price and $1,420/mo median rent
Est. Cap Rate
5.72%
1% Rule
0.65%
Fails
GRM
12.9x
Price / Income
5.1x

Market Data

Median Home Price$220,000
Median Monthly Rent$1,420
Property Tax Rate0.68%
Population74,000
Population Growth0.5% / yr
Median Household Income$42,800
Vacancy Rate7%
Annual Appreciation2%

2026 Market Update: Gulfport

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.

Cap Rate Calculator — Gulfport

Pre-filled with Gulfport medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.68% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.73%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,399
net operating income
Gross Rent Multiplier
12.9x
Good (<15)
1% Rule
0.65%
✗ Fails
Monthly Cash Flow
$867
before debt service
Annual Breakdown
Gross Rental Income$17,040
Less Vacancy−$1,193
Effective Income$15,847
Less Operating Expenses−$5,448
Net Operating Income$10,399
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Cash-on-Cash Return — Gulfport

Factor in financing to see your actual return on invested capital in Gulfport.

$
$55,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.90%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$61,600
$55,000 down + $6,600 closing
Monthly Mortgage
$1,076
on $165K loan
Monthly Cash Flow
$-252
after all expenses
Annual Cash Flow
$-3,020
before taxes
Cash Flow Breakdown
Monthly Rent$1,420
Less Expenses−$596
Less Mortgage−$1,076
Monthly Cash Flow$-252

Is Gulfport a Good Place to Invest in Rental Property?

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.

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