Hammond, LA Cap Rate: 5.33% — Rental Property Analysis
Hammond is a budget-friendly market in the South with a small but investable metro of 50,000. At a 5.33% estimated cap rate, this is a moderate market where rents of $1,310/mo lag behind home prices. With a median home price of $220,000 and population is roughly stable, Hammond offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $220,000 median price and $1,310/mo median rent
Est. Cap Rate
5.33%
1% Rule
0.60%
Fails
GRM
14.0x
Price / Income
4.8x
Market Data
Median Home Price$220,000
Median Monthly Rent$1,310
Property Tax Rate0.54%
Population50,000
Population Growth0.3% / yr
Median Household Income$45,760
Vacancy Rate6.7%
Annual Appreciation2.1%
2026 Market Update: Hammond
Hammond's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $220,000, the $1,310/mo rent produces only $977/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 $-193/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 14.0x gross rent multiplier and 6.7% vacancy rate position Hammond as a value-oriented market. With annual appreciation at 2.1%, total returns (cash flow + equity growth) run approximately 7.4% before financing leverage.
Cap Rate Calculator — Hammond
Pre-filled with Hammond 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
4.44%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,771
net operating income
Gross Rent Multiplier
14.0x
Good (<15)
1% Rule
0.60%
✗ Fails
Monthly Cash Flow
$814
before debt service
Annual Breakdown
Gross Rental Income$15,720
Less Vacancy−$1,053
Effective Income$14,667
Less Operating Expenses−$4,896
Net Operating Income$9,771
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Factor in financing to see your actual return on invested capital in Hammond.
$
$55,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.15%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
$-316
after all expenses
Annual Cash Flow
$-3,788
before taxes
Cash Flow Breakdown
Monthly Rent$1,310
Less Expenses−$550
Less Mortgage−$1,076
Monthly Cash Flow$-316
Is Hammond a Good Place to Invest in Rental Property?
Hammond, 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 $220,000 paired with median rents of $1,310/mo produces an estimated cap rate of 5.33%.
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 4.8x, homes cost about 4.8 times the local median income of $45,760. This moderate ratio indicates a balanced rent-vs-buy market. 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: Hammond presents moderate opportunities. Cap rates near 5.33% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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