Market Analysis
Baton Rouge Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$252,500
Average Monthly Rent
$1,200
Estimated Cap Rate
5.7%
Rent-to-Price Ratio
0.5%
Below 1% Rule
Rent ÷ price by zip code
1 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 70802 | $84,900 | $1,200 | 1.41% |
| 70815 | $230,000 | $1,150 | 0.50% |
| 70806 | $275,000 | $1,200 | 0.44% |
| 70808 | $329,000 | $1,250 | 0.38% |
Context · FRED home price index
Market Trends
Baton Rouge metro area — % change since 2018
Home Prices
+39.1%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $982/mo |
| Condo | $1,144/mo |
| Multi-Family | $1,169/mo |
| Townhouse | $1,398/mo |
| Single Family | $1,698/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$252,500
Down Payment (20%)$50,500
Monthly P&I$1,317
Monthly Rent$1,200
Est. NOI$8,640/yr
Est. Cash Flow-$597/mo
Cash on Cash-12.9%
The Baton Rouge market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Baton Rouge
- 1Moderate cap rates suggest balanced cash flow and appreciation
- 21% Rule fails at median prices — need rent of $2,525/mo to pass
- 3Below-average rents keep entry costs low for new investors
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