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Cap Rate Analysis: New Orleans, LA

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

Moderate — source deals carefully
Based on $265,000 median price and $1,380/mo median rent
Est. Cap Rate
4.51%
1% Rule
0.52%
Fails
GRM
16.0x
Price / Income
5.9x

Market Data

Median Home Price$265,000
Median Monthly Rent$1,380
Property Tax Rate0.55%
Population376,971
Population Growth0.4% / yr
Median Household Income$45,200
Vacancy Rate6.2%
Annual Appreciation2.6%

Cap Rate Calculator — New Orleans

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.55% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.79%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,049
net operating income
Gross Rent Multiplier
16.0x
High (>15)
1% Rule
0.52%
✗ Fails
Monthly Cash Flow
$837
before debt service
Annual Breakdown
Gross Rental Income$16,560
Less Vacancy−$1,027
Effective Income$15,533
Less Operating Expenses−$5,484
Net Operating Income$10,049

Cash-on-Cash Return — New Orleans

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

$
$66,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.02%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$74,200
$66,250 down + $7,950 closing
Monthly Mortgage
$1,296
on $199K loan
Monthly Cash Flow
$-496
after all expenses
Annual Cash Flow
$-5,948
before taxes
Cash Flow Breakdown
Monthly Rent$1,380
Less Expenses−$580
Less Mortgage−$1,296
Monthly Cash Flow$-496

Is New Orleans a Good Place to Invest in Rental Property?

New Orleans, LA has a population of 376,971 and has been growing at 0.4% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $265,000 paired with median rents of $1,380/mo produces an estimated cap rate of 4.51%.

Property taxes at 0.55% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.2% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.9x, homes cost about 5.9 times the local median income of $45,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: New Orleans presents moderate opportunities. Cap rates near 4.51% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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