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Mount Pleasant, TX Cap Rate: 5.42% — Rental Property Analysis

Mount Pleasant is a budget-friendly market in the South with a small but investable metro of 50,000. At a 5.42% estimated cap rate, this is a moderate market where rents of $1,510/mo lag behind home prices. With a median home price of $215,000 and steady population growth supports long-term rental demand, Mount Pleasant 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

Moderate — source deals carefully
Based on $215,000 median price and $1,510/mo median rent
Est. Cap Rate
5.42%
1% Rule
0.70%
Fails
GRM
11.9x
Price / Income
3.4x

Market Data

Median Home Price$215,000
Median Monthly Rent$1,510
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%

2026 Market Update: Mount Pleasant

Mount Pleasant's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $215,000, the $1,510/mo rent produces only $971/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 ($43K at 7%) would result in approximately $-173/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.

Property taxes consume 20% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Mount Pleasant a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.

Cap Rate Calculator — Mount Pleasant

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.72% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.30%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,245
net operating income
Gross Rent Multiplier
11.9x
Good (<15)
1% Rule
0.70%
✗ Fails
Monthly Cash Flow
$770
before debt service
Annual Breakdown
Gross Rental Income$18,120
Less Vacancy−$1,051
Effective Income$17,069
Less Operating Expenses−$7,824
Net Operating Income$9,245
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Cash-on-Cash Return — Mount Pleasant

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

$
$53,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-3.49%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$60,200
$53,750 down + $6,450 closing
Monthly Mortgage
$1,051
on $161K loan
Monthly Cash Flow
$-175
after all expenses
Annual Cash Flow
$-2,103
before taxes
Cash Flow Breakdown
Monthly Rent$1,510
Less Expenses−$634
Less Mortgage−$1,051
Monthly Cash Flow$-175

Is Mount Pleasant a Good Place to Invest in Rental Property?

Mount Pleasant, TX has a population of 50,000 and has been growing at 1.8% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $215,000 paired with median rents of $1,510/mo produces an estimated cap rate of 5.42%.

Property taxes at 1.72% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.4x, homes cost about 3.4 times the local median income of $63,735. 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 2.7% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Mount Pleasant presents moderate opportunities. Cap rates near 5.42% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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