Louisiana Rental Property ROI Calculator
Free Louisiana rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Louisiana's 0.55% property tax rate.
How This Calculator Works
Calculation methodology and assumptions
This calculator uses standard real estate investment analysis to determine the return on a rental property in Louisiana. It factors in the mortgage payment (using a standard amortization formula), property taxes at Louisiana's effective rate of 0.55%, insurance, vacancy loss, maintenance reserves, and property management fees. The cap rate is calculated as Net Operating Income divided by purchase price. Cash-on-cash return measures annual cash flow relative to total cash invested (down payment + estimated closing costs). The 10-year projection assumes 3% annual appreciation and 2% annual rent increases.
Key State Information
Louisiana has an effective property tax rate of 0.55%, which is below the national average of 1.10%. Louisiana has a progressive income tax up to 4.25% state income tax that applies to rental income. Louisiana offers a homestead exemption of up to $75,000 (applies to primary residence, not investment properties).
Frequently Asked Questions
What is the average property tax rate in Louisiana?
Louisiana's effective property tax rate is 0.55%, which means on a $195,000 home, you'd pay approximately $1,073 per year in property taxes.
Is Louisiana a good state for rental property investment?
Louisiana offers a median home price of $195,000 with 2BR rents averaging $935/month. The low property tax rate is favorable for investors. Use this calculator with your specific numbers to determine the actual ROI.
What is a good cap rate for rental property in Louisiana?
A cap rate of 5-8% is generally considered good for rental properties. In Louisiana, cap rates vary significantly by market. Urban areas tend to have lower cap rates (3-5%) but more consistent appreciation, while rural areas may offer higher cap rates (7-10%) with less growth potential.
How much do I need to invest in a rental property in Louisiana?
For a median-priced home in Louisiana ($195,000), a 20% down payment would be $39,000. Including estimated closing costs of $5,850, you'd need approximately $44,850 in cash.
Does Louisiana have landlord-friendly laws?
Louisiana has moderate landlord-tenant laws. Research specific local regulations before investing.
Related Calculators
More Rental Property Calculators
More Calculators for Louisiana
Explore related financial tools with Louisiana data