What's a good cap rate in Baton Rouge?

In Baton Rouge, cap rates typically run around 7.5% (Louisiana state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Baton Rouge deal lands versus this benchmark.

What's the average rent for a rental in Baton Rouge?

A typical rental in Baton Rouge runs about $1,204–$1,511/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Louisiana?

Louisiana's effective property tax rate is about 0.56% of value per year — the figure TrueCap applies by default for Baton Rouge deals. You can override it with the exact local rate.

Baton Rouge, LA

Baton Rouge rental property analysis

Baton Rouge is Louisiana's stable capital-city market — state government, LSU, and petrochemical employment underpin steady rental demand.

Baton Rouge market snapshot

Cash-flow market

Higher typical cap rates — built for monthly cash flow more than price growth.

Typical cap rate

7.5%

Louisiana state median

Typical rent

$1,204–$1,511/mo

HUD FMR · 2–3BR · 2026

Typical price

$200,000–$290,000

est., all-in

Property tax

0.56%

Louisiana effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Baton Rouge a good place to buy rentals?

Dependable demand and affordable entry, but Louisiana insurance is a real cost — quote it as a hard line item. Yield-leaning with modest appreciation.

Neighborhoods to look at in Baton Rouge

Mid City

Central, stable, steady demand.

Sherwood Forest

Affordable SFRs, family renters.

Southdowns

Near LSU, reliable demand.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Baton Rouge deal in 60 seconds

Paste a Baton Rouge address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Louisiana tax and HUD rent so you start from the right assumptions.

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