Real Estate Investing in Water Valley, Mississippi (38965)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38965 (Water Valley, MS)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 16.7% of homes vacant — above national norms.
- Flat appreciation: Values have barely moved over 5 years (0.1% CAGR).
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Water Valley, MS (38965)?
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Market Analysis: 38965 Water Valley
In practical terms, ZIP 38965 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $187K median. It rewards specialists, not generalists.
Distressed markets are won on execution, not on spreadsheets. ZIP 38965 sits at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Within MS, ZIP 38965 trails on several market indicators that neighboring Yalobusha County submarkets outperform. The gap is real and resilient enough to shape underwriting.
Resident income in 38965 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Experienced landlords with local relationships tend to find 38965 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 Water Valley:
Property Strategy for 38965
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $138,446 | $1,170 | 6.1% | +4.4% | $69,223 |
| 3BR | $180,213 | $1,470 | 5.9% | +2.6% | $60,071 |
| 4BR | $235,400 | $1,550 | 4.7% | +3.4% | $58,850 |
Market Trends
Home Value History (with trend line)
📊 How Does 38965 Compare?
| Metric | 38965 | Water Valley | Oxford, MS | Mississippi |
|---|---|---|---|---|
| Home Value | $187,234 | $187,234 | N/A | $186,446 |
| 5-Year CAGR | 0.1% | 0.1% | N/A | 4.0% |
| Avg Rent | $1,053 | $1,053 | N/A | - |
| Cap Rate | 4.4% | 4.4% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38965 (Water Valley, MS). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $187,234 |
| Monthly Rent | $1,053 |
| Price-to-Rent | 14.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.8% |
| Cap Rate | 4.4% |
| 5-Year IRR | 4.5% |
📈 Home Appreciation
| 1-Year | +2.1% ▲ |
| 3-Year CAGR | -1.2% ▼ |
| 5-Year CAGR | +0.1% ▲ |
| 10-Year CAGR | +2.7% ▲ |
🏠 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 (4.4%). 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 38965
Population: 8,801
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 38965
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
Is Water Valley, MS good for landlords?
For rental operators, Water Valley, MS rates as landlord-friendly. The regulatory environment standard buy-and-hold operations.
Are renters plentiful in Water Valley, MS?
Water Valley, MS draws a even-keeled base of working renters. Demand at the $1,053/mo rent level is reasonable for standard single-family and small multi rentals.
How should investors approach Water Valley, MS?
Most investors in Water Valley, MS run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
Does a duplex house hack pencil in Water Valley, MS?
The a challenging house-hack environment in Water Valley, MS reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
Is Water Valley, MS a good market for buy-and-hold investors?
Our data puts Water Valley, MS at 3.0/5 for investability. Home prices of $187K and rents around $1,053/mo create a solid backdrop for investor activity.
You know 38965 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 38965 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 38965 ranks in Oxford, MS
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