13 Louisiana cities ranked by estimated cap rate. The average cap rate across Louisiana markets is 5.9%, with median home prices averaging $190K and rents averaging $1,203/mo. Fort Polk South leads with a 7.3% cap rate at a $160K median price. Louisiana's low average property tax rate of 0.54% gives investors a significant cash flow advantage.
Louisiana offers 13 investable rental markets tracked by CapRateCity. The state average cap rate of 5.9% is above the 3.81% national average, making Louisiana an attractive state for cash flow investors. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Louisiana home prices average $190K, which is 43% below the national average of $333K. Rents average $1,203/mo. The most affordable entry point is Opelousas at $130K, while Fort Polk South offers the highest cap rate at 7.3%.
Taxes and costs: Property taxes average 0.54% across Louisiana, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $1,025 per year to NOI on an average-priced property. Lafayette has the lowest rate at 0.52%.Vacancy averages 6.7%, in line with national norms.
Growth outlook: Population growth across Louisiana averages 0.31% per year, led by Lafayette at 0.6%. Home values are appreciating at 2.1% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Louisiana is one of the stronger states for rental property investing, with above-average cap rates and low taxes. Focus on the top-performing cities for the best risk-adjusted returns.