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Cap Rate Analysis: Baton Rouge, LA

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

Moderate — source deals carefully
Based on $220,000 median price and $1,200/mo median rent
Est. Cap Rate
4.76%
1% Rule
0.55%
Fails
GRM
15.3x
Price / Income
4.6x

Market Data

Median Home Price$220,000
Median Monthly Rent$1,200
Property Tax Rate0.56%
Population224,149
Population Growth0.5% / yr
Median Household Income$48,200
Vacancy Rate6.5%
Annual Appreciation2.3%

Cap Rate Calculator — Baton Rouge

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.56% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.98%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,760
net operating income
Gross Rent Multiplier
15.3x
High (>15)
1% Rule
0.55%
✗ Fails
Monthly Cash Flow
$730
before debt service
Annual Breakdown
Gross Rental Income$14,400
Less Vacancy−$936
Effective Income$13,464
Less Operating Expenses−$4,704
Net Operating Income$8,760

Cash-on-Cash Return — Baton Rouge

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

$
$55,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.40%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$61,600
$55,000 down + $6,600 closing
Monthly Mortgage
$1,076
on $165K loan
Monthly Cash Flow
$-380
after all expenses
Annual Cash Flow
$-4,556
before taxes
Cash Flow Breakdown
Monthly Rent$1,200
Less Expenses−$504
Less Mortgage−$1,076
Monthly Cash Flow$-380

Is Baton Rouge a Good Place to Invest in Rental Property?

Baton Rouge, LA has a population of 224,149 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $220,000 paired with median rents of $1,200/mo produces an estimated cap rate of 4.76%.

Property taxes at 0.56% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.6x, homes cost about 4.6 times the local median income of $48,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Baton Rouge presents moderate opportunities. Cap rates near 4.76% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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