Factor in financing to see your actual return on invested capital in Jefferson City.
$
$66,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.48%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$74,200
$66,250 down + $7,950 closing
Monthly Mortgage
$1,296
on $199K loan
Monthly Cash Flow
$-710
after all expenses
Annual Cash Flow
$-8,516
before taxes
Cash Flow Breakdown
Monthly Rent$1,010
Less Expenses−$424
Less Mortgage−$1,296
Monthly Cash Flow$-710
Is Jefferson City a Good Place to Invest in Rental Property?
Jefferson City, MO has a population of 50,000 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $265,000 paired with median rents of $1,010/mo produces an estimated cap rate of 2.25%.
Property taxes at 1.25% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.5x, homes cost about 5.5 times the local median income of $48,140. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: At current median prices, Jefferson City is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.
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