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
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.
All figures below are computed from Hattiesburg's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
At 0.66% effective rate on the $210,000 median price, the annual tax bill is $1,386 — that's below national average (-38% 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 Hattiesburg continues appreciating at 1.8%/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 | $210K | $1,280 | 5.3% |
| Year 1 | $214K | $1,318 | 5.4% |
| Year 2 | $218K | $1,358 | 5.5% |
| Year 3 | $222K | $1,399 | 5.5% |
| Year 4 | $226K | $1,441 | 5.6% |
| Year 5 | $230K | $1,484 | 5.6% |
Same median-priced Hattiesburg 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 | $210K | $932 | $11,188 | 5.3% |
| 20% down conventional @ 7% | $48K | $-185 | $-2,218 | -4.6% |
| 25% down DSCR @ 8.5% | $61K | $-279 | $-3,346 | -5.5% |
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) | $158K | $1,088 | $8,358 | 5.3% | $696 |
| At median | $210K | $1,280 | $9,570 | 4.6% | $798 |
| Above median (~125% price) | $263K | $1,472 | $10,783 | 4.1% | $899 |
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 Hattiesburg's historical appreciation rate of 1.8%:
On a $42K down payment, that's a 50.2% 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 Hattiesburg, not generic boilerplate:
Pre-filled with Hattiesburg medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Hattiesburg.
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.