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MarketsMississippiStarkville

Cap Rate Analysis: Starkville, MS

Investment metrics, interactive calculators, and data-driven analysis for Starkville rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $245,000 median price and $1,510/mo median rent
Est. Cap Rate
5.39%
1% Rule
0.62%
Fails
GRM
13.5x
Price / Income
6.2x

Market Data

Median Home Price$245,000
Median Monthly Rent$1,510
Property Tax Rate0.66%
Population50,000
Population Growth0.2% / yr
Median Household Income$39,333
Vacancy Rate7.4%
Annual Appreciation1.8%

Cap Rate Calculator — Starkville

Pre-filled with Starkville medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.66% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.45%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,911
net operating income
Gross Rent Multiplier
13.5x
Good (<15)
1% Rule
0.62%
✗ Fails
Monthly Cash Flow
$909
before debt service
Annual Breakdown
Gross Rental Income$18,120
Less Vacancy−$1,341
Effective Income$16,779
Less Operating Expenses−$5,868
Net Operating Income$10,911
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Cash-on-Cash Return — Starkville

Factor in financing to see your actual return on invested capital in Starkville.

$
$61,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.63%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$68,600
$61,250 down + $7,350 closing
Monthly Mortgage
$1,198
on $184K loan
Monthly Cash Flow
$-322
after all expenses
Annual Cash Flow
$-3,863
before taxes
Cash Flow Breakdown
Monthly Rent$1,510
Less Expenses−$634
Less Mortgage−$1,198
Monthly Cash Flow$-322

Is Starkville a Good Place to Invest in Rental Property?

Starkville, MS has a population of 50,000 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $245,000 paired with median rents of $1,510/mo produces an estimated cap rate of 5.39%.

Property taxes at 0.66% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 7.4% runs above average, which increases cash flow volatility and warrants conservative underwriting.

At a price-to-income ratio of 6.2x, homes cost about 6.2 times the local median income of $39,333. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 1.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Starkville presents moderate opportunities. Cap rates near 5.39% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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