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MarketsMississippiTupelo

Cap Rate Analysis: Tupelo, MS

Investment metrics, interactive calculators, and data-driven analysis for Tupelo 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 $185,000 median price and $1,190/mo median rent
Est. Cap Rate
5.69%
1% Rule
0.64%
Fails
GRM
13.0x
Price / Income
4.7x

Market Data

Median Home Price$185,000
Median Monthly Rent$1,190
Property Tax Rate0.66%
Population50,000
Population Growth0.2% / yr
Median Household Income$39,333
Vacancy Rate7.4%
Annual Appreciation1.8%

Cap Rate Calculator — Tupelo

Pre-filled with Tupelo 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
4.70%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,687
net operating income
Gross Rent Multiplier
13.0x
Good (<15)
1% Rule
0.64%
✗ Fails
Monthly Cash Flow
$724
before debt service
Annual Breakdown
Gross Rental Income$14,280
Less Vacancy−$1,057
Effective Income$13,223
Less Operating Expenses−$4,536
Net Operating Income$8,687
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Cash-on-Cash Return — Tupelo

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

$
$46,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.97%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$51,800
$46,250 down + $5,550 closing
Monthly Mortgage
$905
on $139K loan
Monthly Cash Flow
$-215
after all expenses
Annual Cash Flow
$-2,575
before taxes
Cash Flow Breakdown
Monthly Rent$1,190
Less Expenses−$500
Less Mortgage−$905
Monthly Cash Flow$-215

Is Tupelo a Good Place to Invest in Rental Property?

Tupelo, 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 $185,000 paired with median rents of $1,190/mo produces an estimated cap rate of 5.69%.

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 4.7x, homes cost about 4.7 times the local median income of $39,333. This moderate ratio indicates a balanced rent-vs-buy market. 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: Tupelo presents moderate opportunities. Cap rates near 5.69% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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