Factor in financing to see your actual return on invested capital in Ruston.
$
$53,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.82%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
$-442
after all expenses
Annual Cash Flow
$-5,307
before taxes
Cash Flow Breakdown
Monthly Rent$1,050
Less Expenses−$441
Less Mortgage−$1,051
Monthly Cash Flow$-442
Is Ruston a Good Place to Invest in Rental Property?
Ruston, LA has a population of 50,000 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $215,000 paired with median rents of $1,050/mo produces an estimated cap rate of 4.13%.
Property taxes at 0.54% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.7% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.7x, homes cost about 4.7 times the local median income of $45,760. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Ruston presents moderate opportunities. Cap rates near 4.13% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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