Real Estate Investing in Clarksdale, Mississippi (38720)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38720 (Clarksdale, MS)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 19.9% of homes vacant — above national norms.
- Declining values: -8.1% 5-year CAGR — values have moved lower.
- 1-year downturn: Values declined 8.1% in the last year.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Clarksdale, MS (38720)?
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Market Analysis: 38720 Clarksdale
ZIP 38720 inside Coahoma County looks affordable on the surface — median value of $85K — but the discount exists for reasons that a careful buyer should understand before committing.
For an experienced owner, 38720 can be a worth a close look for hunting ground — but the discount at $85K reflects genuine risk that outside investors often underestimate.
Nearby ZIPs in Clarksdale have seen price recovery that 38720 has not matched. Coahoma County data supports the view that the spread is structural rather than temporary.
A significant renter share of 20% in 38720 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
looks to the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Clarksdale:
Market Trends
Home Value History (with trend line)
📊 How Does 38720 Compare?
| Metric | 38720 | Clarksdale | Clarksdale, MS | Mississippi |
|---|---|---|---|---|
| Home Value | $85,151 | $67,167 | N/A | $186,446 |
| 5-Year CAGR | N/A | N/A | N/A | 4.0% |
| Avg Rent | $765 | $783 | N/A | - |
| Cap Rate | 7.0% | 9.9% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38720 (Clarksdale, MS). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $85,151 |
| Monthly Rent | $765 |
| Price-to-Rent | 9.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 10.8% |
| Cap Rate | 7.0% |
| 5-Year IRR | N/A |
📈 Home Appreciation
| 1-Year | -8.1% ▼ |
| 3-Year CAGR | -2.4% ▼ |
| 5-Year CAGR | -8.1% ▼ |
| 10-Year CAGR | -2.2% ▼ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (7.0%). Financing this market at current rates produces a cash-on-cash return near the cap rate. Appreciation and tax benefits may still support the investment.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 38720
Population: 549
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
Frequently Asked Questions
Are rents high in Clarksdale, MS?
Clarksdale, MS rentals go for roughly $765/mo a month. That puts gross yield in solid territory relative to $85K acquisition costs.
How strong is tenant demand in Clarksdale, MS?
Working renters make up the core of the Clarksdale, MS tenant base. The pool is reasonable for investors targeting long-term holds.
How much should I expect to pay for a home in Clarksdale, MS?
Expect median prices around $85K in Clarksdale, MS. The market has run at a 0.0% 5-year CAGR, so entry costs have been even-keeled.
Is Clarksdale, MS a friendly market for rental owners?
Clarksdale, MS falls under MS landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
How does Clarksdale, MS rate as a rental market?
Clarksdale, MS rates 3.0/5 for investability. With median values at $85K and rents near $765/mo, the market offers reasonable fundamentals for rental investors.
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