Shreveport, LA Cap Rate 6.88%
Shreveport is the third-largest metro in Louisiana and structurally unique — uniquely anchored by Barksdale Air Force Base (the headquarters of US Air Force Global Strike Command, which controls the entire US nuclear bomber and ICBM force) plus the Haynesville Shale natural gas play. The 6.88% cap rate at a $175,000 median price keeps the 0.74% rent-to-price ratio at or above the 1% rule in many submarkets — Shreveport remains a genuine cash-flow market. Population growth at -0.3%/yr is essentially flat.
Employment is anchored by Barksdale Air Force Base (in adjacent Bossier City — the home of Air Force Global Strike Command, which oversees the entire US nuclear bomber and ICBM force; collectively one of the more strategically-important US Air Force installations, with the broader Department of Defense civilian and contractor workforce), the Cyber Innovation Center near Barksdale (the broader federal cyber-and-intelligence cluster), the broader Haynesville Shale natural gas economy (one of the major US shale gas plays — services, drilling, and supply chain employment), Willis-Knighton Health System (the dominant regional medical system), Christus Health Shreveport-Bossier, LSU Shreveport (LSU Health Sciences Center is a meaningful academic medical employer), the broader Caddo Parish government, the broader riverboat-casino economy (Shreveport-Bossier hosts multiple casino operations), and a meaningful film-industry tax-incentive cluster. Submarkets stratify cleanly: the historic Highland and South Highland areas are walkable urban-historic with strong appreciation; the broader Bossier City east is the suburban-school zone drawing military officer family rentals; the central and west Shreveport zones offer deeper-value workforce inventory with significant operational complexity.
Louisiana property tax at 0.54% looks moderate but the homestead exemption distortion means non-owner-occupant investors pay materially more than the headline rate suggests. LA state income tax is graduated with a top rate near 4.25%. Insurance is reasonable for inland Shreveport (limited Gulf hurricane exposure, though tornado/severe-weather risk is real). The structural advantages: Barksdale's Global Strike Command mission concentration makes it among the more strategically-irreplaceable US Air Force installations — BRAC tail risk is materially lower than at training-only installations; BAH provides predictable rent floor in Bossier City submarkets; genuine cash-flow math at the median; cost basis is among the lowest in Louisiana. The structural risks: natural gas commodity cycles affect Haynesville-related employment; Shreveport proper has had historical population trajectory weakness; per-block variance is significant. For investors who want genuinely strategic-defense-anchored cash-flow math at low cost basis, Shreveport is one of the most defensible smaller US strategic-Air-Force-base options.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
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.
Deal Modeling & Scenarios for Shreveport
All figures below are computed from Shreveport's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.54% effective rate on the $175,000 median price, the annual tax bill is $945 — that's very low (bottom 15% of US markets) (-49% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Shreveport continues appreciating at 1.5%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $175K | $1,300 | 6.9% |
| Year 1 | $178K | $1,339 | 7.0% |
| Year 2 | $180K | $1,379 | 7.1% |
| Year 3 | $183K | $1,421 | 7.2% |
| Year 4 | $186K | $1,463 | 7.3% |
| Year 5 | $189K | $1,507 | 7.4% |
Three Financing Scenarios
Same median-priced Shreveport property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $175K | $1,003 | $12,038 | 6.9% |
| 20% down conventional @ 7% | $40K | $72 | $866 | 2.2% |
| 25% down DSCR @ 8.5% | $51K | $-6 | $-74 | -0.1% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $131K | $1,105 | $8,870 | 6.8% | $739 |
| At median | $175K | $1,300 | $10,242 | 5.9% | $854 |
| Above median (~125% price) | $219K | $1,495 | $11,614 | 5.3% | $968 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Shreveport's historical appreciation rate of 1.5%:
On a $35K down payment, that's a 81.0% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Shreveport
Automated checks against the underlying data — surface only the risks that actually apply to Shreveport, not generic boilerplate:
Cap Rate Calculator — Shreveport
Pre-filled with Shreveport medians. Adjust to match a specific property.
Cash-on-Cash Return — Shreveport
Factor in financing to see your actual return on invested capital in Shreveport.
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.