Houma, LA — Rental Investment Analysis
🟢GOOD— solid returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Houma, LA offers a 7.1% cap rate with median home prices of $157,233 and 3-bedroom rents of $1,390/month.
Houma offers solid returns for rental investors. At $157,233 median home price, Houma is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,390/month, the 7.1% cap rate tells the story. Cash flow is modest at +$49/month — positive but tight. Rate increases or vacancies could flip it negative.
The 1% rule comes in at 0.90% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.11 is tight — you'll pass most lender minimums but with little margin for error.
Bottom line: Buy here if you want reliable monthly income. Houma is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
7.1%
Above average
Monthly Cash Flow
+$49
After all expenses
Price-to-Rent
9.5
Investor-friendly
DSCR
1.11
Tight
Key Metrics
- Median Home Price
- $157,233
- Average Rent (3BR)
- $1,390/mo
- Price-to-Rent Ratio
- 9.5(good)
- 1% Rule
- 0.90%(fails — need 1%+)
- Cash-on-Cash Return
- 3.1%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 4.4%(+0.1% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- -2.45% YoY
Property Tax Rate
0.55%
of assessed value (LA avg)
Median Income
$52,087
household (LA avg)
Rent-to-Income
32%
Moderate
Section 8 Max Rent
$1,390/mo
3BR voucher payment
LA Investor Climate
Landlord Friendly
7/10
State Income Tax
Has state tax
Property Tax
0.55% effective
Population Trend
-2.45% (3yr)