Real Estate Investing in Shannon, Mississippi (38868)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38868 (Shannon, 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.
- High vacancy: 14.6% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Shannon, MS (38868)?
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Market Analysis: 38868 Shannon
The 38868 ZIP covers a section of Shannon that demands careful diligence. Prices near $171K look accessible, but the work to make a deal cash flow is real.
Rent of $891/mo on a $171K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 38868 sits below the stated 0.0% once reality is priced in.
Regionally, 38868 sits on the difficult end of the MS spectrum. The worth a close look for read — for disciplined operators — is that pricing reflects the difficulty.
A significant renter share of 26% in 38868 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategically, 38868 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Shannon:
Market Trends
Home Value History (with trend line)
📊 How Does 38868 Compare?
| Metric | 38868 | Shannon | Tupelo, MS | Mississippi |
|---|---|---|---|---|
| Home Value | $170,567 | $170,567 | N/A | $186,446 |
| 5-Year CAGR | 4.4% | 4.4% | N/A | 4.0% |
| Avg Rent | $891 | $891 | N/A | - |
| Cap Rate | 4.1% | 4.1% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38868 (Shannon, MS). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $170,567 |
| Monthly Rent | $891 |
| Price-to-Rent | 16.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.3% |
| Cap Rate | 4.1% |
| 5-Year IRR | 8.5% |
📈 Home Appreciation
| 1-Year | +14.8% ▲ |
| 3-Year CAGR | +6.1% ▲ |
| 5-Year CAGR | +4.4% ▲ |
| 10-Year CAGR | +4.2% ▲ |
🏠 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 (4.1%). 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 38868
Population: 4,700
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 38868
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
Do rentals sit vacant long in Shannon, MS?
Expect elevated vacancy in Shannon, MS. Rents at $891/mo are absorbed by the tenant base without meaningful lag.
Are landlord laws favorable in Shannon, MS?
Rental owners in Shannon, MS deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
Is housing expensive in Shannon, MS?
Shannon, MS median home values land near $171K. That is reasonable territory for investors looking at $891/mo-per-month rentals.
Does house hacking make sense in Shannon, MS?
House hacking works a challenging in Shannon, MS. Rents of $891/mo against $171K acquisition make the strategy solid for owner-occupants.
How qualified is the tenant pool in Shannon, MS?
Expect a solid tenant pool in Shannon, MS. The rental market absorbs $891/mo rents without meaningful friction.
You know 38868 now. You don’t know where it ranks.
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How 38868 ranks in Tupelo, MS
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