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MarketsMississippiMeridian

Cap Rate Analysis: Meridian, MS

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

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Strong investment fundamentals
Based on $120,000 median price and $1,070/mo median rent
Est. Cap Rate
8.45%
1% Rule
0.89%
Fails
GRM
9.3x
Price / Income
3.1x

Market Data

Median Home Price$120,000
Median Monthly Rent$1,070
Property Tax Rate0.66%
Population50,000
Population Growth0.2% / yr
Median Household Income$39,333
Vacancy Rate7.4%
Annual Appreciation1.8%

Cap Rate Calculator — Meridian

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.66% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
6.92%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$8,302
net operating income
Gross Rent Multiplier
9.3x
Good (<15)
1% Rule
0.89%
✗ Fails
Monthly Cash Flow
$692
before debt service
Annual Breakdown
Gross Rental Income$12,840
Less Vacancy−$950
Effective Income$11,890
Less Operating Expenses−$3,588
Net Operating Income$8,302
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Cash-on-Cash Return — Meridian

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

$
$30,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
1.22%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$33,600
$30,000 down + $3,600 closing
Monthly Mortgage
$587
on $90K loan
Monthly Cash Flow
$34
after all expenses
Annual Cash Flow
$411
before taxes
Cash Flow Breakdown
Monthly Rent$1,070
Less Expenses−$449
Less Mortgage−$587
Monthly Cash Flow$34

Is Meridian a Good Place to Invest in Rental Property?

Meridian, 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 $120,000 paired with median rents of $1,070/mo produces an estimated cap rate of 8.45%.

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 3.1x, homes cost about 3.1 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: Meridian offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.

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