Harrison County

Harrison County sits at a gross rent-to-price ratio of 7.48%, which places it in a middle zone between pure cash-flow territory and appreciation-driven markets. The modeled cap rate comes in at 4.86%, which is serviceable but not exceptional, and the standard underwrite at 6.85% financing produces a monthly cash flow of negative $274 on a $229,862 purchase with 20% down, a cash-on-cash return of -6.22%. That shortfall is real and matters: at current rates, this is not a market where you clip coupons from day one at conventional leverage. The 2.76% year-over-year home price appreciation adds another layer to the return picture, and the model's appreciation score of 78 out of 100 reflects that the long-run thesis here leans on equity growth alongside rental income rather than cash flow alone. The affordability index of 81 and median price of roughly $230K keep the entry bar low enough that creative financing, higher down payments, or value-add execution can shift the math meaningfully.

The investor profile this market suits most is someone who can blend a modest appreciation thesis with disciplined underwriting and is willing to accept thin or slightly negative cash flow in exchange for a below-$230K entry point in a Gulf Coast market with an 81st-percentile national ranking across 1,000 counties. Pure cash-flow buyers looking for day-one positive returns at 20% down will be frustrated by the -6.22% cash-on-cash figure and should look elsewhere unless they can negotiate below list, bring more equity, or find properties priced meaningfully under the county median. Value-add operators who can acquire at a discount, force appreciation through renovation, and reposition rents above the $1,433 median have the most actionable path to acceptable returns. An appreciation buyer with a 7-to-10-year horizon can tolerate the negative carry if the 2.76% annual price growth continues and they believe in the coastal demand story.

Harrison County anchors the Mississippi Gulf Coast and is home to Biloxi and Gulfport, two cities that generate a substantial share of the state's tourism and gaming revenue. The county's economic base draws from the casino and hospitality sector, Keesler Air Force Base, and Port of Gulfport activity. Keesler in particular matters to rental investors because military households create predictable, lease-signing demand with stable income verification, reducing credit and vacancy risk relative to purely civilian markets. The mix of government, defense, and entertainment employment provides some diversification, though the concentration in tourism and gaming is a cyclical exposure worth acknowledging.

The combined monthly tax and insurance burden on a $229,862 property runs approximately $251, broken down as $155 in estimated property taxes and $96 in insurance, using state-average effective rates from Tax Foundation 2024 data. The property tax rate of 0.81% is flagged as normal, meaning it is neither a tailwind nor a headwind in the underwrite. However, Mississippi's Gulf Coast carries meaningful property insurance exposure given hurricane risk, and the $1,149 annual insurance estimate should be treated as a floor rather than a ceiling. Coastal properties, older construction, or those without wind mitigation upgrades can see insurance costs substantially higher than state averages. Verify actual quotes before closing, and factor wind and flood coverage separately, as those premiums are not always captured in standard landlord policy estimates. As with all figures here, the 0.81% rate is a state-average estimate and county or township rates may differ.

The primary risk concentration in Harrison is weather and catastrophe exposure. The Gulf Coast geography that creates tourism demand and military presence also creates hurricane vulnerability. Properties in flood zones carry mandatory flood insurance costs that can add hundreds of dollars per month to operating expenses and are not reflected in the base model. Investor-level due diligence should include FEMA flood zone verification, elevation certificate review, and a real insurance quote before any offer. A secondary consideration is that tourism-driven economies can see rental demand soften during downturns or after major storm events, even if physical property damage is limited.

Compared to its Mississippi neighbors, Harrison offers a middle-ground profile. Lauderdale County, with a median home price of $122,775 and a rent-to-price ratio of 11.69%, is the obvious cash-flow alternative for yield-focused buyers, and its overall score of 72 is close to Harrison's 70 despite the dramatically different price point. If your primary objective is day-one cash flow and you have no strong preference for the Gulf Coast specifically, Lauderdale's math is substantially better. Rankin County, at $261,732 median with a rent-to-price ratio of 7.95% and overall score of 69, is priced higher than Harrison for a slightly better yield ratio but a lower overall score. Monroe and Alcorn counties price in at $160,564 and $166,945, offering lower entry costs but without rent data here to assess their yield dynamics. Harrison makes the most sense over these neighbors when the investor specifically values the coastal location, the Keesler military demand driver, the Port of Gulfport economic context, or believes the 78 appreciation score reflects a structural price growth tailwind that inland Mississippi counties lack. If those factors do not matter to your thesis, the cash-flow numbers in Lauderdale are harder to argue with.