McComb, MS Cap Rate 7.43%
McComb is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 7.43% estimated cap rate, this is a high-yield market where rents of $840/mo lag behind home prices. With a median home price of $105,000 and population is roughly stable, McComb 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
Market Data
2026 Market Update: McComb
At a 0.8% rent-to-price ratio, McComb falls just below the 1% rule threshold. A median-priced property at $105,000 with $840/mo rent yields approximately $650/mo in NOI — workable with favorable financing but not a slam-dunk cash flow market.
On a conventional loan with 20% down ($21K) at 7%, estimated monthly cash flow is $91 — a thin 5.2% cash-on-cash return. Investors should negotiate below asking price or target properties with above-median rents to build a meaningful cash flow buffer.
The 10.4x gross rent multiplier and 7.4% vacancy rate position McComb as a value-oriented market. With annual appreciation at 1.8%, total returns (cash flow + equity growth) run approximately 9.2% before financing leverage.
Deal Modeling & Scenarios for McComb
All figures below are computed from McComb's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.66% effective rate on the $105,000 median price, the annual tax bill is $693 — that's below national average (-38% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If McComb continues appreciating at 1.8%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $105K | $840 | 7.4% |
| Year 1 | $107K | $865 | 7.5% |
| Year 2 | $109K | $891 | 7.6% |
| Year 3 | $111K | $918 | 7.7% |
| Year 4 | $113K | $945 | 7.8% |
| Year 5 | $115K | $974 | 7.9% |
Three Financing Scenarios
Same median-priced McComb property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $105K | $650 | $7,801 | 7.4% |
| 20% down conventional @ 7% | $24K | $91 | $1,098 | 4.5% |
| 25% down DSCR @ 8.5% | $30K | $45 | $534 | 1.8% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $79K | $714 | $5,728 | 7.3% | $477 |
| At median | $105K | $840 | $6,608 | 6.3% | $551 |
| Above median (~125% price) | $131K | $966 | $7,488 | 5.7% | $624 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at McComb's historical appreciation rate of 1.8%:
On a $21K down payment, that's a 102.8% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to McComb
Automated checks against the underlying data — surface only the risks that actually apply to McComb, not generic boilerplate:
Cap Rate Calculator — McComb
Pre-filled with McComb medians. Adjust to match a specific property.
Cash-on-Cash Return — McComb
Factor in financing to see your actual return on invested capital in McComb.
Is McComb a Good Place to Invest in Rental Property?
McComb, MS has a population of 50,000 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 $105,000 paired with median rents of $840/mo produces an estimated cap rate of 7.43%.
Property taxes at 0.66% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 7.4% runs above average, which increases cash flow volatility and warrants conservative underwriting.
At a price-to-income ratio of 2.7x, homes cost about 2.7 times the local median income of $39,333. 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 1.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: McComb offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.