Real estate investing in Mississippi has become an increasingly attractive option for investors in recent years. With relatively low property prices and rents, Mississippi offers investors the opportunity to achieve good cash flow and long-term capital appreciation. In this article, we will analyze the key trends, prospects and tips for successful real estate investing in Mississippi.
Steady population and economic growth
Mississippi’s population and economy have been growing steadily in recent years. The population has increased from 2.9 million in 2010 to nearly 3 million in 2020. Job growth has also been positive, with unemployment falling to record lows before the pandemic. Major employers like shipbuilders and manufacturers have expanded. This provides a solid foundation for real estate demand and growth potential going forward.
Strong rental property fundamentals
Rental property investing is particularly compelling in Mississippi. Home prices remain relatively low, with the median home value around $155,000 statewide. Rents have risen faster than home values, allowing investors to achieve strong rental yields. Vacancy rates are below 5% in most markets, indicating high demand relative to supply.
Favorable property tax rates
Mississippi offers very low property tax rates compared to most other states, with an average effective rate of just 0.57%. This results in low holding costs for investment properties. Property taxes are based on 10% of assessed value, which is capped at 10% annual increases.
Improving coastal housing markets
Coastal markets like Gulfport and Biloxi offer some of the best prospects in Mississippi real estate. These areas have seen rising home prices and rents, driven by economic diversification, tourism, and hurricane rebuilding. Investors can target affordable properties with upside potential.
Strong university town markets
College towns like Oxford (University of Mississippi) and Starkville (Mississippi State) have seen surging demand, as enrollment growth fuels the rental and housing markets. Investors should focus on properties catering to student renters in these stable, high-growth areas.
In summary, Mississippi provides an under-the-radar opportunity for real estate investors seeking cash flow and appreciation potential. Steady economic growth, favorable property fundamentals, and improving local markets create a promising outlook. Conducting thorough due diligence and targeting the right properties and locations within Mississippi is key to investment success.