%
CapRateCity
Free cap rate calculators for every US market
Jackson, MS

Rental Property Investment Guide: Jackson, MS

Updated 2026 · Based on median market data for Jackson, MS

Cap Rate
5.80%
Median Price
$140K
Rent/Mo
$920
1% Rule
0.66%
Fails

Market Snapshot

Jackson sits in the South with a population of 153,701 declining at -0.2% annually. The median home costs $140,000 while rents average $920/mo, producing an estimated cap rate of 5.80%. This is a moderate market that rewards careful deal sourcing.

Who Should Invest Here

Jackson works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 5.80% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.

Deal Criteria for Jackson

Target properties priced 15-25% below the $140,000 median — around $112,000 or less. At this price point with $920/mo rents, your cap rate improves to roughly 7.6%. Factor in 0.65% property taxes ($910/yr), budget 5% of gross rent for maintenance, and underwrite to a 8% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $921.

Risks and Considerations

Population decline (-0.2%) is the primary risk — shrinking markets can see rising vacancy and downward pressure on rents and values. The 8% vacancy rate is above the national average, so budget conservatively and screen tenants carefully. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific Jackson property using our cap rate calculator (pre-filled with Jackson data). Compare Jackson against similar markets in the South region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

Full Jackson Analysis →Cap Rate CalculatorBRRRR Calculator

More Jackson Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

Similar Markets in the South

Mobile, AL$155K · $980/mo
5.8%
Charleston, WV$135K · $880/mo
5.9%
Dothan, AL$165K · $1,020/mo
5.7%
Montgomery, AL$165K · $1,020/mo
5.7%
Hattiesburg, MS$145K · $920/mo
5.6%
The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.