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MarketsMissouriSt. JosephRental Property Investment Guide

Rental Property Investment Guide: St. Joseph, MO

Updated 2026 · Based on median market data for St. Joseph, MO

Cap Rate
2.96%
Median Price
$205K
Rent/Mo
$910
1% Rule
0.44%
Fails

Market Snapshot

St. Joseph sits in the Midwest with a population of 50,000 growing at 0.5% annually. The median home costs $205,000 while rents average $910/mo, producing an estimated cap rate of 2.96%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.

Who Should Invest Here

St. Joseph works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 2.96% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.

Deal Criteria for St. Joseph

Target properties priced 15-25% below the $205,000 median — around $164,000 or less. At this price point with $910/mo rents, your cap rate improves to roughly 4.2%. Factor in 1.25% property taxes ($2,563/yr), budget 5% of gross rent for maintenance, and underwrite to a 6% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,404.

Risks and Considerations

Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific St. Joseph property using our cap rate calculator (pre-filled with St. Joseph data). Compare St. Joseph against similar markets in the Midwest region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

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How St. Joseph Compares

St. Joseph vs Missouri state average and national average across key investment metrics. St. Joseph's cap rate is below both benchmarks — deal sourcing is critical here.

Metric
St. Joseph
Missouri Avg
National Avg
Cap Rate
2.96%
3.26%
3.81%
Median Price
$205K
$241K
$333K
Median Rent
$910
$1,126
$1,524
Property Tax
1.25%
1.25%
1.08%
Vacancy
6%
6%
5.6%
Pop. Growth
0.5%/yr
0.5%/yr
0.9%/yr

Nearby Midwest Markets

City
Cap Rate
Price
Rent
Tax
St. Joseph, MO
3.0%
$205K
$910
1.25%
Canton, OH
3.2%
$205K
$1,030
1.58%
Greenville, OH
1.3%
$205K
$680
1.58%
Lexington, NE
4.6%
$205K
$1,270
1.62%
Topeka, KS
4.0%
$210K
$1,160
1.39%

Frequently Asked Questions

Is St. Joseph, MO a good place to invest in rental property?
St. Joseph has an estimated cap rate of 2.96%, which is below the national average of 3.81%. With median home prices at $205K and rents of $910/mo, pure cash flow investing in St. Joseph is challenging at median prices, but value-add strategies can work. Population growth of 0.5% and 6% vacancy rate suggest moderate rental demand.
What is the average cap rate in St. Joseph?
The estimated cap rate for St. Joseph is 2.96%, based on median home prices of $205K, median rents of $910/mo, a 1.25% property tax rate, and 6% vacancy. This compares to a 3.26% average across Missouri and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in St. Joseph?
The median home price in St. Joseph is $205,000, which is 39% below the national average of $333,419. A 20% down payment would be approximately $41,000. Investment properties in St. Joseph range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are St. Joseph property taxes for investors?
St. Joseph's effective property tax rate is 1.25%, which is above the Missouri average of 1.25% and above the national average of 1.08%. On a $205K property, annual taxes are approximately $2,563 ($214/mo). Property taxes are moderate and manageable.
Full St. Joseph Analysis →Cap Rate CalculatorBRRRR Calculator

Explore St. Joseph & Related Markets

More St. Joseph Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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