Oxford, MS Cap Rate: 5.15% — Rental Property Analysis
Oxford is a higher-priced market in the South with a small but investable metro of 50,000. At a 5.15% estimated cap rate, this is a moderate market where rents of $2,350/mo lag behind home prices. With a median home price of $395,000 and population is roughly stable, Oxford 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
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Moderate — source deals carefully
Based on $395,000 median price and $2,350/mo median rent
Est. Cap Rate
5.15%
1% Rule
0.59%
Fails
GRM
14.0x
Price / Income
10.0x
Market Data
Median Home Price$395,000
Median Monthly Rent$2,350
Property Tax Rate0.66%
Population50,000
Population Growth0.2% / yr
Median Household Income$39,333
Vacancy Rate7.4%
Annual Appreciation1.8%
2026 Market Update: Oxford
Oxford's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $395,000, the $2,350/mo rent produces only $1,696/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 ($79K at 7%) would result in approximately $-405/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.
The 14.0x gross rent multiplier and 7.4% vacancy rate position Oxford as a balanced market. With annual appreciation at 1.8%, total returns (cash flow + equity growth) run approximately 7.0% before financing leverage.
Cap Rate Calculator — Oxford
Pre-filled with Oxford 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
4.27%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$16,849
net operating income
Gross Rent Multiplier
14.0x
Good (<15)
1% Rule
0.59%
✗ Fails
Monthly Cash Flow
$1,404
before debt service
Annual Breakdown
Gross Rental Income$28,200
Less Vacancy−$2,087
Effective Income$26,113
Less Operating Expenses−$9,264
Net Operating Income$16,849
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Factor in financing to see your actual return on invested capital in Oxford.
$
$98,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.17%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$110,600
$98,750 down + $11,850 closing
Monthly Mortgage
$1,931
on $296K loan
Monthly Cash Flow
$-568
after all expenses
Annual Cash Flow
$-6,820
before taxes
Cash Flow Breakdown
Monthly Rent$2,350
Less Expenses−$987
Less Mortgage−$1,931
Monthly Cash Flow$-568
Is Oxford a Good Place to Invest in Rental Property?
Oxford, 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 $395,000 paired with median rents of $2,350/mo produces an estimated cap rate of 5.15%.
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 10.0x, homes cost about 10.0 times the local median income of $39,333. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. 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: Oxford presents moderate opportunities. Cap rates near 5.15% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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