Monroe, LA — Rental Investment Analysis
🟡MODERATE— average returnsInvestment Summary
Monroe is a moderate market — workable but not exceptional for cash flow. At $194,120 median home price, Monroe is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,180/month, the 4.7% cap rate tells the story. Cash flow is deeply negative at -$287/month with standard assumptions. This market requires appreciation to justify the investment.
At 0.65% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of 0.74 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.
Bottom line: Consider Monroe only if you believe in long-term appreciation. The numbers don't support cash flow at today's prices and rates.
Cap Rate
4.7%
Below average
Monthly Cash Flow
-$287
After all expenses
Price-to-Rent
12.9
Investor-friendly
DSCR
0.74
Fails
Key Metrics
- Median Home Price
- $194,120
- Average Rent (3BR)
- $1,180/mo
- Price-to-Rent Ratio
- 12.9(good)
- 1% Rule
- 0.65%(fails — need 1%+)
- Cash-on-Cash Return
- -7.4%
- 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
27.2%
Affordable
Section 8 Max Rent
$1,180/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)