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
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.
All figures below are computed from Shreveport's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
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.
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% |
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% |
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 |
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.
Automated checks against the underlying data — surface only the risks that actually apply to Shreveport, not generic boilerplate:
Pre-filled with Shreveport medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Shreveport.
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.