Jackson, MS Cap Rate: 6.33% — Rental Property Analysis
Jackson is a budget-friendly market in the South with a mid-sized city of 153,701. At a 6.33% estimated cap rate, this is a solid market where rents of $1,480/mo lag behind home prices. With a median home price of $210,000 and the population has been declining, which investors should factor into long-term projections, Jackson 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
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Strong investment fundamentals
Based on $210,000 median price and $1,480/mo median rent
Est. Cap Rate
6.33%
1% Rule
0.70%
Fails
GRM
11.8x
Price / Income
5.7x
Market Data
Median Home Price$210,000
Median Monthly Rent$1,480
Property Tax Rate0.65%
Population153,701
Population Growth-0.2% / yr
Median Household Income$36,800
Vacancy Rate8%
Annual Appreciation1.6%
2026 Market Update: Jackson
Jackson's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $210,000, the $1,480/mo rent produces only $1,108/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 $-9/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 8% vacancy rate is a key risk factor — above the 6.5% national average. Budget for 8–10% vacancy in your underwriting rather than the headline number. Focus on neighborhoods and property types with demonstrated low turnover to mitigate this risk.
Cap Rate Calculator — Jackson
Pre-filled with Jackson medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.65% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
5.21%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$10,939
net operating income
Gross Rent Multiplier
11.8x
Good (<15)
1% Rule
0.70%
✗ Fails
Monthly Cash Flow
$912
before debt service
Annual Breakdown
Gross Rental Income$17,760
Less Vacancy−$1,421
Effective Income$16,339
Less Operating Expenses−$5,400
Net Operating Income$10,939
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Factor in financing to see your actual return on invested capital in Jackson.
$
$52,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-3.44%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
$-169
after all expenses
Annual Cash Flow
$-2,025
before taxes
Cash Flow Breakdown
Monthly Rent$1,480
Less Expenses−$622
Less Mortgage−$1,027
Monthly Cash Flow$-169
Is Jackson a Good Place to Invest in Rental Property?
Jackson, MS has a population of 153,701 and has been growing at -0.2% 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 $1,480/mo produces an estimated cap rate of 6.33%.
Property taxes at 0.65% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 8% runs above average, which increases cash flow volatility and warrants conservative underwriting.
At a price-to-income ratio of 5.7x, homes cost about 5.7 times the local median income of $36,800. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 1.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Jackson offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.
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