Meridian is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 8.45% estimated cap rate, this is a high-yield market where rents of $1,070/mo lag behind home prices. With a median home price of $120,000 and population is roughly stable, Meridian 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
At a 0.9% rent-to-price ratio, Meridian falls just below the 1% rule threshold. A median-priced property at $120,000 with $1,070/mo rent yields approximately $845/mo in NOI — workable with favorable financing but not a slam-dunk cash flow market.
With 20% down ($24K) on a 7% conventional loan, estimated monthly cash flow is $207 — a 10.3% cash-on-cash return. That's strong enough to weather vacancies and unexpected repairs without dipping into reserves.
The 9.3x gross rent multiplier and 7.4% vacancy rate position Meridian as a value-oriented market. With annual appreciation at 1.8%, total returns (cash flow + equity growth) run approximately 10.2% before financing leverage.
Pre-filled with Meridian medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Meridian.
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.