Jefferson, GA Cap Rate: 4.18% — Rental Property Analysis
Jefferson is a higher-priced market in the South with a small but investable metro of 50,000. At a 4.18% estimated cap rate, this is a moderate market where rents of $2,100/mo lag behind home prices. With a median home price of $400,000 and steady population growth supports long-term rental demand, Jefferson offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $400,000 median price and $2,100/mo median rent
Est. Cap Rate
4.18%
1% Rule
0.53%
Fails
GRM
15.9x
Price / Income
8.1x
Market Data
Median Home Price$400,000
Median Monthly Rent$2,100
Property Tax Rate0.93%
Population50,000
Population Growth0.9% / yr
Median Household Income$49,350
Vacancy Rate6.2%
Annual Appreciation2.9%
2026 Market Update: Jefferson
Jefferson's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $400,000, the $2,100/mo rent produces only $1,393/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 ($80K at 7%) would result in approximately $-735/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 15.9x gross rent multiplier and 6.2% vacancy rate position Jefferson as a balanced market. With annual appreciation at 2.9%, total returns (cash flow + equity growth) run approximately 7.1% before financing leverage.
Cap Rate Calculator — Jefferson
Pre-filled with Jefferson medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.93% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.45%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$13,786
net operating income
Gross Rent Multiplier
15.9x
High (>15)
1% Rule
0.53%
✗ Fails
Monthly Cash Flow
$1,149
before debt service
Annual Breakdown
Gross Rental Income$25,200
Less Vacancy−$1,562
Effective Income$23,638
Less Operating Expenses−$9,852
Net Operating Income$13,786
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Factor in financing to see your actual return on invested capital in Jefferson.
$
$100,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.90%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$112,000
$100,000 down + $12,000 closing
Monthly Mortgage
$1,956
on $300K loan
Monthly Cash Flow
$-738
after all expenses
Annual Cash Flow
$-8,853
before taxes
Cash Flow Breakdown
Monthly Rent$2,100
Less Expenses−$882
Less Mortgage−$1,956
Monthly Cash Flow$-738
Is Jefferson a Good Place to Invest in Rental Property?
Jefferson, GA has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $400,000 paired with median rents of $2,100/mo produces an estimated cap rate of 4.18%.
Property taxes at 0.93% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 8.1x, homes cost about 8.1 times the local median income of $49,350. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.9% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Jefferson presents moderate opportunities. Cap rates near 4.18% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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