%
CapRateCity
Free cap rate calculators for every US market
MarketsLouisianaMonroeRental Property Investment Guide

Rental Property Investment Guide: Monroe, LA

Updated 2026 · Based on median market data for Monroe, LA

Cap Rate
6.36%
Median Price
$160K
Rent/Mo
$1,100
1% Rule
0.69%
Fails

Market Snapshot

Monroe sits in the South with a population of 50,000 growing at 0.3% annually. The median home costs $160,000 while rents average $1,100/mo, producing an estimated cap rate of 6.36%. This puts Monroe in the upper tier of investable US markets.

Who Should Invest Here

Monroe is ideal for cash flow investors, BRRRR practitioners, and anyone building a portfolio of affordable, income-producing rentals. The low price point ($160,000) means you can get started with a $32,000 down payment, and the 6.36% cap rate should produce positive cash flow even with conservative financing.

Deal Criteria for Monroe

Target properties priced 15-25% below the $160,000 median — around $128,000 or less. At this price point with $1,100/mo rents, your cap rate improves to roughly 8.3%. Factor in 0.54% property taxes ($864/yr), budget 5% of gross rent for maintenance, and underwrite to a 6.7% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,023.

Risks and Considerations

Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific Monroe property using our cap rate calculator (pre-filled with Monroe data). Compare Monroe against similar markets in the South region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

Sponsored · Want to analyze a specific property? DealCheck imports real listing data and runs the full analysis for you.
Try Free →

How Monroe Compares

Monroe vs Louisiana state average and national average across key investment metrics. Monroe outperforms both benchmarks on cap rate.

Metric
Monroe
Louisiana Avg
National Avg
Cap Rate
6.36%
5.85%
3.81%
Median Price
$160K
$190K
$333K
Median Rent
$1,100
$1,203
$1,524
Property Tax
0.54%
0.54%
1.08%
Vacancy
6.7%
6.7%
5.6%
Pop. Growth
0.3%/yr
0.3%/yr
0.9%/yr

Nearby South Markets

City
Cap Rate
Price
Rent
Tax
Monroe, LA
6.4%
$160K
$1,100
0.54%
Albany, GA
5.7%
$160K
$1,050
0.93%
Alexandria, LA
5.8%
$160K
$1,020
0.54%
Cumberland, MD
5.4%
$160K
$1,020
1.04%
Danville, VA
6.5%
$160K
$1,150
0.86%

Frequently Asked Questions

Is Monroe, LA a good place to invest in rental property?
Monroe has an estimated cap rate of 6.36%, which is above the national average of 3.81%. With median home prices at $160K and rents of $1,100/mo, Monroe offers strong cash flow fundamentals for rental investors. Population growth of 0.3% and 6.7% vacancy rate suggest moderate rental demand.
What is the average cap rate in Monroe?
The estimated cap rate for Monroe is 6.36%, based on median home prices of $160K, median rents of $1,100/mo, a 0.54% property tax rate, and 6.7% vacancy. This compares to a 5.85% average across Louisiana and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in Monroe?
The median home price in Monroe is $160,000, which is 52% below the national average of $333,419. A 20% down payment would be approximately $32,000. Investment properties in Monroe range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Monroe property taxes for investors?
Monroe's effective property tax rate is 0.54%, which is above the Louisiana average of 0.54% and below the national average of 1.08%. On a $160K property, annual taxes are approximately $864 ($72/mo). Low property taxes are a significant cash flow advantage here.
Full Monroe Analysis →Cap Rate CalculatorBRRRR Calculator

Explore Monroe & Related Markets

More Monroe Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

Similar Markets in the South

Lafayette, LA$195K · $1,330/mo
6.3%
Jackson, MS$210K · $1,480/mo
6.3%
Waycross, GA$165K · $1,190/mo
6.4%
Montgomery, AL$205K · $1,380/mo
6.3%
Sumter, SC$205K · $1,410/mo
6.4%
The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.