Real Estate Investing in Houston, Mississippi (38851)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38851 (Houston, MS)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- Elevated vacancy: 11.2% vacancy may signal weakening demand.
- Elevated poverty: 26.3% poverty rate — can affect rent collection.
- Lower household income: $39,544 median — tenant affordability is tighter.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Houston, MS (38851)?
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Market Analysis: 38851 Houston
On the rental side, ZIP 38851 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $144K median. It rewards specialists, not generalists.
The investment case in 38851 is robust only for operators who understand what they are buying. A $144K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Regionally, 38851 sits on the difficult end of the MS spectrum. The a strong candidate for read — for disciplined operators — is that pricing reflects the difficulty.
Who lives in 38851 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Experienced landlords with local relationships tend to find 38851 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Houston:
Property Strategy for 38851
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $96,715 | $870 | 6.5% | +5.2% | $48,358 |
| 3BR | $138,155 | $1,170 | 6.1% | +4.8% | $46,052 |
| 4BR | $206,232 | $1,450 | 5.1% | +6.8% | $51,558 |
Market Trends
Home Value History (with trend line)
📊 How Does 38851 Compare?
| Metric | 38851 | Houston | Mississippi |
|---|---|---|---|
| Home Value | $143,948 | $143,948 | $186,446 |
| 5-Year CAGR | 2.5% | 2.5% | 4.0% |
| Avg Rent | $783 | $783 | - |
| Cap Rate | 4.2% | 4.2% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38851 (Houston, MS). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $143,948 |
| Monthly Rent | $783 |
| Price-to-Rent | 15.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.5% |
| Cap Rate | 4.2% |
| 5-Year IRR | 6.8% |
📈 Home Appreciation
| 1-Year | +0.2% ▲ |
| 3-Year CAGR | +1.7% ▲ |
| 5-Year CAGR | +2.5% ▲ |
| 10-Year CAGR | +3.3% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.2%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 38851
Population: 8,797
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 38851
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
Frequently Asked Questions
Are homes affordable in Houston, MS?
In Houston, MS the median home value sits at $144K. Against the broader MS market, that reads as reasonable for most investors.
What real estate strategy is ideal for Houston, MS?
A careful cash-flow rentals with hands-on management strategy Houston, MS best. The market produces steady results for that approach at the $144K price point.
How qualified is the tenant pool in Houston, MS?
Houston, MS offers a stable renter base at the $783/mo rent level. Tenant turnover is reasonable for well-managed properties.
Is Houston, MS suited for a house hack?
Houston, MS is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $144K price point reasonable to enter.
How landlord-friendly is Houston, MS?
Houston, MS falls under MS landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
You know 38851 now. You don’t know where it ranks.
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Community Ratings
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