Shreveport, LA Cap Rate: 6.88% — Rental Property Analysis
Shreveport is one of the most affordable markets in the country in the South with a mid-sized city of 187,112. At a 6.88% estimated cap rate, this is a solid market where rents of $1,300/mo lag behind home prices. With a median home price of $175,000 and the population has been declining, which investors should factor into long-term projections, Shreveport 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
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Strong investment fundamentals
Based on $175,000 median price and $1,300/mo median rent
Est. Cap Rate
6.88%
1% Rule
0.74%
Fails
GRM
11.2x
Price / Income
4.6x
Market Data
Median Home Price$175,000
Median Monthly Rent$1,300
Property Tax Rate0.54%
Population187,112
Population Growth-0.3% / yr
Median Household Income$38,400
Vacancy Rate7.8%
Annual Appreciation1.5%
2026 Market Update: Shreveport
Shreveport's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $175,000, the $1,300/mo rent produces only $1,003/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
On a conventional loan with 20% down ($35K) at 7%, estimated monthly cash flow is $72 — a thin 2.5% cash-on-cash return. Investors should negotiate below asking price or target properties with above-median rents to build a meaningful cash flow buffer.
The 7.8% vacancy rate is a key risk factor — above the 6.5% national average. Budget for 8–10% vacancy in your underwriting rather than the headline number. Focus on neighborhoods and property types with demonstrated low turnover to mitigate this risk.
Cap Rate Calculator — Shreveport
Pre-filled with Shreveport medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.54% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
5.67%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$9,931
net operating income
Gross Rent Multiplier
11.2x
Good (<15)
1% Rule
0.74%
✗ Fails
Monthly Cash Flow
$828
before debt service
Annual Breakdown
Gross Rental Income$15,600
Less Vacancy−$1,217
Effective Income$14,383
Less Operating Expenses−$4,452
Net Operating Income$9,931
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Factor in financing to see your actual return on invested capital in Shreveport.
$
$43,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-2.49%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$49,000
$43,750 down + $5,250 closing
Monthly Mortgage
$856
on $131K loan
Monthly Cash Flow
$-102
after all expenses
Annual Cash Flow
$-1,220
before taxes
Cash Flow Breakdown
Monthly Rent$1,300
Less Expenses−$546
Less Mortgage−$856
Monthly Cash Flow$-102
Is Shreveport a Good Place to Invest in Rental Property?
Shreveport, LA has a population of 187,112 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 $175,000 paired with median rents of $1,300/mo produces an estimated cap rate of 6.88%.
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 7.8% runs above average, which increases cash flow volatility and warrants conservative underwriting.
At a price-to-income ratio of 4.6x, homes cost about 4.6 times the local median income of $38,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 1.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Shreveport offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.
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