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Cap Rate Analysis: Lafayette, LA

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

Moderate — source deals carefully
Based on $210,000 median price and $1,150/mo median rent
Est. Cap Rate
4.83%
1% Rule
0.55%
Fails
GRM
15.2x
Price / Income
4.2x

Market Data

Median Home Price$210,000
Median Monthly Rent$1,150
Property Tax Rate0.52%
Population126,000
Population Growth0.6% / yr
Median Household Income$50,200
Vacancy Rate6.4%
Annual Appreciation2.2%

Cap Rate Calculator — Lafayette

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.52% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.05%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,501
net operating income
Gross Rent Multiplier
15.2x
High (>15)
1% Rule
0.55%
✗ Fails
Monthly Cash Flow
$708
before debt service
Annual Breakdown
Gross Rental Income$13,800
Less Vacancy−$883
Effective Income$12,917
Less Operating Expenses−$4,416
Net Operating Income$8,501

Cash-on-Cash Return — Lafayette

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

$
$52,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.34%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$58,800
$52,500 down + $6,300 closing
Monthly Mortgage
$1,027
on $158K loan
Monthly Cash Flow
$-360
after all expenses
Annual Cash Flow
$-4,317
before taxes
Cash Flow Breakdown
Monthly Rent$1,150
Less Expenses−$483
Less Mortgage−$1,027
Monthly Cash Flow$-360

Is Lafayette a Good Place to Invest in Rental Property?

Lafayette, LA has a population of 126,000 and has been growing at 0.6% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $210,000 paired with median rents of $1,150/mo produces an estimated cap rate of 4.83%.

Property taxes at 0.52% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.4% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.2x, homes cost about 4.2 times the local median income of $50,200. 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 2.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Lafayette presents moderate opportunities. Cap rates near 4.83% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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