Houma is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 7.10% estimated cap rate, this is a high-yield market where rents of $1,320/mo lag behind home prices. With a median home price of $175,000 and population is roughly stable, Houma 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
Houma's 0.8% rent-to-price ratio is well below the 1% rule. At median prices of $175,000, the $1,320/mo rent produces only $1,036/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
On a conventional loan with 20% down ($35K) at 7%, estimated monthly cash flow is $105 — a thin 3.6% cash-on-cash return. Investors should negotiate below asking price or target properties with above-median rents to build a meaningful cash flow buffer.
The 11.0x gross rent multiplier and 6.7% vacancy rate position Houma as a value-oriented market. With annual appreciation at 2.1%, total returns (cash flow + equity growth) run approximately 9.2% before financing leverage.
Pre-filled with Houma medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Houma.
Houma, 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 $175,000 paired with median rents of $1,320/mo produces an estimated cap rate of 7.10%.
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 3.8x, homes cost about 3.8 times the local median income of $45,760. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. 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: Houma offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.