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Cap Rate Analysis: Jackson, TN

Investment metrics, interactive calculators, and data-driven analysis for Jackson rental properties.

Moderate — source deals carefully
Based on $185,000 median price and $1,080/mo median rent
Est. Cap Rate
5.19%
1% Rule
0.58%
Fails
GRM
14.3x
Price / Income
4.2x

Market Data

Median Home Price$185,000
Median Monthly Rent$1,080
Property Tax Rate0.56%
Population68,000
Population Growth0.4% / yr
Median Household Income$44,200
Vacancy Rate6.5%
Annual Appreciation2.2%

Cap Rate Calculator — Jackson

Pre-filled with Jackson medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.56% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.33%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,014
net operating income
Gross Rent Multiplier
14.3x
Good (<15)
1% Rule
0.58%
✗ Fails
Monthly Cash Flow
$668
before debt service
Annual Breakdown
Gross Rental Income$12,960
Less Vacancy−$842
Effective Income$12,118
Less Operating Expenses−$4,104
Net Operating Income$8,014

Cash-on-Cash Return — Jackson

Factor in financing to see your actual return on invested capital in Jackson.

$
$46,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.45%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$51,800
$46,250 down + $5,550 closing
Monthly Mortgage
$905
on $139K loan
Monthly Cash Flow
$-279
after all expenses
Annual Cash Flow
$-3,343
before taxes
Cash Flow Breakdown
Monthly Rent$1,080
Less Expenses−$454
Less Mortgage−$905
Monthly Cash Flow$-279

Is Jackson a Good Place to Invest in Rental Property?

Jackson, TN has a population of 68,000 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 $185,000 paired with median rents of $1,080/mo produces an estimated cap rate of 5.19%.

Property taxes at 0.56% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.2x, homes cost about 4.2 times the local median income of $44,200. 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 2.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Jackson presents moderate opportunities. Cap rates near 5.19% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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