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Cap Rate Analysis: Jackson, MS

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

Moderate — source deals carefully
Based on $140,000 median price and $920/mo median rent
Est. Cap Rate
5.80%
1% Rule
0.66%
Fails
GRM
12.7x
Price / Income
3.8x

Market Data

Median Home Price$140,000
Median Monthly Rent$920
Property Tax Rate0.65%
Population153,701
Population Growth-0.2% / yr
Median Household Income$36,800
Vacancy Rate8%
Annual Appreciation1.6%

Cap Rate Calculator — Jackson

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.65% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.78%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,689
net operating income
Gross Rent Multiplier
12.7x
Good (<15)
1% Rule
0.66%
✗ Fails
Monthly Cash Flow
$557
before debt service
Annual Breakdown
Gross Rental Income$11,040
Less Vacancy−$883
Effective Income$10,157
Less Operating Expenses−$3,468
Net Operating Income$6,689

Cash-on-Cash Return — Jackson

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

$
$35,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.61%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$39,200
$35,000 down + $4,200 closing
Monthly Mortgage
$685
on $105K loan
Monthly Cash Flow
$-151
after all expenses
Annual Cash Flow
$-1,806
before taxes
Cash Flow Breakdown
Monthly Rent$920
Less Expenses−$386
Less Mortgage−$685
Monthly Cash Flow$-151

Is Jackson a Good Place to Invest in Rental Property?

Jackson, MS has a population of 153,701 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 $140,000 paired with median rents of $920/mo produces an estimated cap rate of 5.80%.

Property taxes at 0.65% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 8% runs above average, which increases cash flow volatility and warrants conservative underwriting.

At a price-to-income ratio of 3.8x, homes cost about 3.8 times the local median income of $36,800. 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 1.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Jackson presents moderate opportunities. Cap rates near 5.80% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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