What's a good cap rate in New Orleans?

In New Orleans, cap rates typically run around 7.0% (New Orleans metro 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 New Orleans deal lands versus this benchmark.

What's the average rent for a rental in New Orleans?

A typical rental in New Orleans runs about $1,331–$1,701/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 New Orleans deals. You can override it with the exact local rate.

New Orleans, LA

New Orleans rental property analysis

New Orleans blends tourism-driven short-term-rental demand with rich culture — but insurance and flood costs are the make-or-break line.

New Orleans market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

7.0%

New Orleans metro median

Typical rent

$1,331–$1,701/mo

HUD FMR · 2–3BR · 2026

Typical price

$250,000–$360,000

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 New Orleans a good place to buy rentals?

STR and tourism upside is real, but quote insurance and flood before you offer — they can erase the cash flow. Underwrite them as hard line items.

Neighborhoods to look at in New Orleans

Mid-City

Stable, central, steady rental demand.

Gentilly

Value-add, recovering, improving demand.

Algiers

Affordable, ferry access, steadier ratios.

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

Run a New Orleans deal in 60 seconds

Paste a New Orleans 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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