Hattiesburg, MS Cap Rate: 5.33% — Rental Property Analysis
Hattiesburg is a budget-friendly market in the South with a small but investable metro of 48,000. At a 5.33% estimated cap rate, this is a moderate market where rents of $1,280/mo lag behind home prices. With a median home price of $210,000 and population is roughly stable, Hattiesburg 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 $210,000 median price and $1,280/mo median rent
Est. Cap Rate
5.33%
1% Rule
0.61%
Fails
GRM
13.7x
Price / Income
5.5x
Market Data
Median Home Price$210,000
Median Monthly Rent$1,280
Property Tax Rate0.66%
Population48,000
Population Growth0.4% / yr
Median Household Income$38,400
Vacancy Rate7.2%
Annual Appreciation1.8%
2026 Market Update: Hattiesburg
Hattiesburg's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $210,000, the $1,280/mo rent produces only $932/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 ($42K at 7%) would result in approximately $-185/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 13.7x gross rent multiplier and 7.2% vacancy rate position Hattiesburg as a value-oriented market. With annual appreciation at 1.8%, total returns (cash flow + equity growth) run approximately 7.1% before financing leverage.
Cap Rate Calculator — Hattiesburg
Pre-filled with Hattiesburg medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.66% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.41%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,262
net operating income
Gross Rent Multiplier
13.7x
Good (<15)
1% Rule
0.61%
✗ Fails
Monthly Cash Flow
$772
before debt service
Annual Breakdown
Gross Rental Income$15,360
Less Vacancy−$1,106
Effective Income$14,254
Less Operating Expenses−$4,992
Net Operating Income$9,262
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Factor in financing to see your actual return on invested capital in Hattiesburg.
$
$52,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.81%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$58,800
$52,500 down + $6,300 closing
Monthly Mortgage
$1,027
on $158K loan
Monthly Cash Flow
$-285
after all expenses
Annual Cash Flow
$-3,417
before taxes
Cash Flow Breakdown
Monthly Rent$1,280
Less Expenses−$538
Less Mortgage−$1,027
Monthly Cash Flow$-285
Is Hattiesburg a Good Place to Invest in Rental Property?
Hattiesburg, MS has a population of 48,000 and has been growing at 0.4% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $210,000 paired with median rents of $1,280/mo produces an estimated cap rate of 5.33%.
Property taxes at 0.66% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 7.2% runs above average, which increases cash flow volatility and warrants conservative underwriting.
At a price-to-income ratio of 5.5x, homes cost about 5.5 times the local median income of $38,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 1.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Hattiesburg 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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