Real Estate Investing in Caledonia, Mississippi (39740)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 39740 (Caledonia, MS)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 11.2% vacancy may signal weakening demand.
- High price-to-rent: Price-to-rent ratio 27.5 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Caledonia, MS (39740)?
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Market Analysis: 39740 Caledonia
This part of Lowndes County is not an easy win. The 39740 ZIP reflects softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Rent of $792/mo on a $262K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 39740 sits below the stated 0.0% once reality is priced in.
Within MS, ZIP 39740 trails on several market indicators that neighboring Lowndes County submarkets outperform. The gap is real and substantial enough to shape underwriting.
Who lives in 39740 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
New investors are better served looking at Caledonia's stable or hybrid ZIPs before stepping into 39740. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Caledonia:
Market Trends
Home Value History (with trend line)
📊 How Does 39740 Compare?
| Metric | 39740 | Caledonia | Columbus, MS | Mississippi |
|---|---|---|---|---|
| Home Value | $261,582 | $261,582 | N/A | $186,446 |
| 5-Year CAGR | 4.6% | 4.6% | N/A | 4.0% |
| Avg Rent | $792 | $792 | N/A | - |
| Cap Rate | 2.4% | 2.4% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 39740 (Caledonia, MS). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $261,582 |
| Monthly Rent | $792 |
| Price-to-Rent | 27.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.6% |
| Cap Rate | 2.4% |
| 5-Year IRR | 7.0% |
📈 Home Appreciation
| 1-Year | +5.3% ▲ |
| 3-Year CAGR | +5.3% ▲ |
| 5-Year CAGR | +4.6% ▲ |
| 10-Year CAGR | +5.3% ▲ |
🏠 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 (2.4%). 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 39740
Population: 5,893
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 39740
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
What investment strategy works best in Caledonia, MS?
Most investors in Caledonia, 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.
Is Caledonia, MS a good market for buy-and-hold investors?
Investors tracking Caledonia, MS will find a 3.0/5 rating supported by $262K median home values and $792/mo rents. That profile suits long-term holders targeting consistent returns.
Are eviction rules reasonable in Caledonia, MS?
Caledonia, MS falls under MS landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Does house hacking work in Caledonia, MS?
House hacking in Caledonia, MS is reasonable to execute. Prices around $262K and rents of $792/mo solid owner-occupant economics.
What is the typical home price in Caledonia, MS?
In Caledonia, MS the median home value sits at $262K. Against the broader MS market, that reads as reasonable for most investors.
You know 39740 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 39740 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 39740 ranks in Columbus, MS
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