Lauderdale County

Lauderdale County sits at a median home price of $121,229 with median rent of $1,291, producing a rent-to-price ratio of 12.8%. That figure alone puts this market firmly on the cash-flow end of the spectrum. The model underwrite at 6.85% financing shows a cap rate of 8.31% and a cash-on-cash return of 8.78% on a 20% down payment of $24,246, with estimated monthly cash flow of $204 after a $635 mortgage and $452 in expenses. Appreciation is modest, with home prices up just 1.2% year-over-year, so this is not a market where you underwrite to price gains. The affordability index hits 100 out of 100, meaning entry costs are as low as they get at this tier of analysis. This county ranks 14th nationally out of 1,000 and first in Mississippi out of 80 counties evaluated, placing it in the 98th national percentile for overall investment score.

The cash-flow score of 100 makes the target buyer obvious: an investor whose underwrite lives and dies on day-one income rather than terminal value. A 12.8% rent-to-price ratio at a $121,229 purchase price means you can acquire a property, finance 80% of it, and still clear positive cash flow at the modeled assumptions, which is not something most US markets can claim at conventional interest rates. The appreciation score of 62 reflects the 1.2% price growth, so if your strategy requires meaningful equity build through price appreciation, this market will frustrate you. Value-add operators can find opportunity here given the low entry price, since even modest renovation-driven rent increases move the needle significantly on a property acquired at this basis. A $10,000 renovation that lifts monthly rent by $100 represents a 12% return on that incremental spend.

The combined monthly tax and insurance figure comes to $132, which is already baked into the $452 estimated expense figure. The state-average effective property tax rate is 0.81%, flagged as normal, meaning it neither drags on cash flow the way a high-tax state does nor provides an unusual tailwind. That said, the Tax Foundation 2024 state-average rate is an estimate, and actual Lauderdale County or township-level assessments may differ, so pull the county assessor's effective rate on any specific parcel before finalizing your underwrite. Insurance at 0.50% annually adds $606 per year, which is worth watching given Mississippi's exposure to severe weather, but at the modeled level it is not a deal-breaker.

The stability score of 50 is the number that deserves the most attention in your risk analysis. A market with cash-flow scores at the ceiling and stability scores at the midpoint is telling you that income is achievable but tenant pool consistency and economic durability carry real uncertainty. With a population of 72,741, Lauderdale is a small market with a limited number of major demand drivers, and any meaningful employer contraction would tighten the tenant pool faster than it would in a larger metro. Concentration risk is real at this scale: a single large employer reduction shows up quickly in vacancy. No employer-specific data was provided for this county, so underwrite conservatively on occupancy, using a vacancy assumption that reflects the stability score rather than assuming the cash-flow numbers hold at 100% occupancy.

Compared to its neighbors, Lauderdale's position becomes clearer. Hinds County, which includes Jackson, carries a nearly identical rent-to-price ratio of 12.85% versus Lauderdale's 12.78%, and similar pricing at $125,430, but scores two points lower overall at 76. The difference is marginal on the numbers and an investor would need to weigh Hinds's larger metro footprint against Lauderdale's top state ranking. Lee County presents a different tradeoff entirely: median home price of $196,256 with a rent-to-price ratio of only 7.77%, which is a conventional appreciation play, not a cash-flow buy. An investor choosing between Lee and Lauderdale is essentially choosing between two different strategies, not two versions of the same one. Holmes County at $84,259 is the cheaper entry point but carries the same overall score of 76 with no rent data provided, making the cash-flow case harder to verify. Scott County and Monroe County both score lower at 76 and 73 respectively, with Monroe at a $160,564 median price that compresses yield without an offsetting rent figure to justify it. Choose Lauderdale over its neighbors when your primary objective is documented, day-one cash flow at a low acquisition price, and you are prepared to manage the stability risk that comes with a smaller market.