Jackson, MS — Rental Investment Analysis
🟢STRONG— excellent cash flow marketData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Jackson, MS has a median cap rate of 8.3%, making it one of the top cash-flowing rental markets in the United States.
Jackson is one of the strongest cash flow markets in the data. With a median home price of $134,569, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,300/month, the 8.3% cap rate tells the story. Expect around +$175/month cash flow after mortgage, taxes, insurance, and reserves.
The market passes the 1% rule (1.01%), which is increasingly rare and signals strong rent-to-price fundamentals. DSCR of 1.30 means the property's income comfortably covers debt service — DSCR loans should be easy to qualify for here.
Bottom line: Buy here if you want reliable monthly income. Jackson 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
8.3%
Above average
Monthly Cash Flow
+$175
After all expenses
Price-to-Rent
8.6
Investor-friendly
DSCR
1.30
Passes lender test
Key Metrics
- Median Home Price
- $134,569
- Average Rent (3BR)
- $1,300/mo
- Price-to-Rent Ratio
- 8.6(good)
- 1% Rule
- 1.01%(passes)
- Cash-on-Cash Return
- 8.1%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 3.8%(-0.5% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- -1.65% YoY
Property Tax Rate
0.67%
of assessed value (MS avg)
Median Income
$48,610
household (MS avg)
Rent-to-Income
32.1%
Moderate
Section 8 Max Rent
$1,300/mo
3BR voucher payment
MS Investor Climate
Landlord Friendly
8/10
State Income Tax
Has state tax
Property Tax
0.67% effective
Population Trend
-1.65% (3yr)
Population Movement (Tax Year 2021→2022)
Net Migration
-742 households
SHRINKING
Total Inflow
78,522
households moved in
Avg Income (New Residents)
$58,329
per household
Where they're coming from:
Where residents are leaving to:
Net outflow may indicate weakening demand — but can mean lower prices and higher cap rates.
Best Zip Codes in Jackson for Investors
All Zip Codes in Jackson
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 39209 | 21.8% | +$623 | $48,685 | $1,160/mo | 3.40 |
| 39204 | 21.7% | +$633 | $49,701 | $1,180/mo | 3.39 |
| 39203 | 20.8% | +$572 | $47,750 | $1,090/mo | 3.25 |
| 39213 | 20.0% | +$572 | $50,250 | $1,110/mo | 3.14 |
| 39212 | 13.8% | +$580 | $93,995 | $1,480/mo | 2.16 |
| 39206 | 10.2% | +$360 | $113,265 | $1,370/mo | 1.60 |
| 39114 | 6.3% | -$9 | $155,873 | $1,270/mo | 0.99 |
| 39211 | 5.9% | -$92 | $210,733 | $1,620/mo | 0.92 |
| 39044 | 5.5% | -$131 | $181,260 | $1,330/mo | 0.86 |
| 39202 | 4.5% | -$298 | $192,716 | $1,220/mo | 0.71 |
| 39216 | 4.4% | -$362 | $222,835 | $1,390/mo | 0.69 |
| 39154 | 4.0% | -$502 | $256,935 | $1,500/mo | 0.63 |