Gulfport, MS Cap Rate 5.72%
Gulfport is the largest metro on the Mississippi Gulf Coast — anchored by the Port of Gulfport, the broader Keesler AFB tenant base from neighboring Biloxi, and the casino economy. The 5.72% cap rate at a $220,000 median price keeps the 0.65% rent-to-price ratio close to functional. Population growth at 0.5%/yr is steady, helped by sustained post-Hurricane-Katrina rebuilding.
Employment is anchored by Keesler Air Force Base in adjacent Biloxi (the home of the 81st Training Wing — the Air Force's primary training site for cyber and communications-electronics, plus the 403rd Wing — one of the larger US Air Force training installations, with the broader Department of Defense civilian and contractor workforce extending into Gulfport submarkets), the Mississippi Gulf Coast casino economy (the broader Biloxi-Gulfport casino industry — Beau Rivage, Hard Rock, and others produce sustained tourism and hospitality employment), the Port of Gulfport (the major MS Gulf cargo port), the broader Memorial Hospital at Gulfport and Singing River Health, the broader Harrison County government, the Stennis Space Center (NASA's major rocket-engine test facility 30 miles west — meaningful federal employment for the region), and a meaningful manufacturing and ship-repair base. Submarkets stratify cleanly: the historic East Beach area is walkable beachfront with strong appreciation; the broader West Gulfport and Long Beach areas draw family rentals; the Keesler-adjacent zones in Biloxi have military family rentals with BAH support; the inland Gulfport zones offer deeper-value workforce inventory.
Mississippi property tax at 0.68% is among the lowest in the country. State income tax is moving toward elimination (currently graduated, top rate near 4.4%; phased reductions ongoing). Insurance is the dominant operational variable — the MS Gulf Coast has significant hurricane exposure (Hurricane Katrina in 2005 caused catastrophic damage; the broader MS coastal insurance market has continued to be challenging). Get a binder quote per address — verify both standard and the Mississippi Windstorm Underwriting Association (the state insurer-of-last-resort) pricing. Flood-zone designations matter sharply. The structural advantages: Keesler AFB's training mission concentration makes it relatively durable against BRAC consolidation; sustained casino-and-tourism employment; MS tax structure is among the most favorable; Stennis Space Center provides federal-research overlay. The structural risks: hurricane exposure and insurance trajectory are real and have been the central long-term variable for Gulf Coast investing.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
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.
Deal Modeling & Scenarios for Gulfport
All figures below are computed from Gulfport's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
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.
5-Year Cap Rate Trajectory
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% |
Three Financing Scenarios
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% |
Three Price Tiers: Below, At, and Above the Median
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 |
Total Return Over a 5-Year Hold
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.
Risk Flags Specific to Gulfport
Automated checks against the underlying data — surface only the risks that actually apply to Gulfport, not generic boilerplate:
Cap Rate Calculator — Gulfport
Pre-filled with Gulfport medians. Adjust to match a specific property.
Cash-on-Cash Return — Gulfport
Factor in financing to see your actual return on invested capital in Gulfport.
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.