9 Mississippi cities ranked by estimated cap rate. The average cap rate across Mississippi markets is 6.3%, with median home prices averaging $208K and rents averaging $1,387/mo. Meridian leads with a 8.4% cap rate at a $120K median price. Mississippi's low average property tax rate of 0.66% gives investors a significant cash flow advantage.
Mississippi offers 9 investable rental markets tracked by CapRateCity. The state average cap rate of 6.3% is above the 3.81% national average, making Mississippi 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: Mississippi home prices average $208K, which is 38% below the national average of $333K. Rents average $1,387/mo. The most affordable entry point is McComb at $105K, while Meridian offers the highest cap rate at 8.4%.
Taxes and costs: Property taxes average 0.66% across Mississippi, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $870 per year to NOI on an average-priced property. Jackson has the lowest rate at 0.65%.Vacancy averages 7.4%, in line with national norms.
Growth outlook: Population growth across Mississippi averages 0.21% per year, led by Gulfport at 0.5%. Home values are appreciating at 1.8% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Mississippi 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.