Waycross, GA Cap Rate 6.39%
Waycross is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 6.39% estimated cap rate, this is a solid market where rents of $1,190/mo lag behind home prices. With a median home price of $165,000 and steady population growth supports long-term rental demand, Waycross stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Waycross
Waycross's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $165,000, the $1,190/mo rent produces only $878/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($33K at 7%) would result in approximately $0/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 11.6x gross rent multiplier and 6.2% vacancy rate position Waycross as a value-oriented market. With annual appreciation at 2.9%, total returns (cash flow + equity growth) run approximately 9.3% before financing leverage.
Deal Modeling & Scenarios for Waycross
All figures below are computed from Waycross's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.93% effective rate on the $165,000 median price, the annual tax bill is $1,535 — that's near national average (-12% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Waycross continues appreciating at 2.9%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $165K | $1,190 | 6.4% |
| Year 1 | $170K | $1,226 | 6.4% |
| Year 2 | $175K | $1,262 | 6.4% |
| Year 3 | $180K | $1,300 | 6.4% |
| Year 4 | $185K | $1,339 | 6.4% |
| Year 5 | $190K | $1,380 | 6.4% |
Three Financing Scenarios
Same median-priced Waycross property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $165K | $878 | $10,540 | 6.4% |
| 20% down conventional @ 7% | $38K | $1 | $7 | 0.0% |
| 25% down DSCR @ 8.5% | $48K | $-73 | $-880 | -1.8% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $124K | $1,012 | $7,802 | 6.3% | $650 |
| At median | $165K | $1,190 | $8,915 | 5.4% | $743 |
| Above median (~125% price) | $206K | $1,369 | $10,038 | 4.9% | $836 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Waycross's historical appreciation rate of 2.9%:
On a $33K down payment, that's a 106.9% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Waycross
Automated checks against the underlying data — surface only the risks that actually apply to Waycross, not generic boilerplate:
Cap Rate Calculator — Waycross
Pre-filled with Waycross medians. Adjust to match a specific property.
Cash-on-Cash Return — Waycross
Factor in financing to see your actual return on invested capital in Waycross.
Is Waycross a Good Place to Invest in Rental Property?
Waycross, GA has a population of 50,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $165,000 paired with median rents of $1,190/mo produces an estimated cap rate of 6.39%.
Property taxes at 0.93% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.3x, homes cost about 3.3 times the local median income of $49,350. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.9% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Waycross offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.