1031 Exchange in Alexandria MSA
The Alexandria MSA offers affordable 1031 exchange opportunities with cap rates around 6.5-8.2%, property taxes at 0.76%, stable healthcare and government employment, and median home prices of $220,000 in Central Louisiana's regional hub.
Population
148,171
Key Industries
Healthcare, Government, Manufacturing
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.76%
Assessment Method
Assessed Value (Louisiana Property Tax System)
MSA rate (0.76%) vs State average (0.87%)
-13% below state average, -25% below national average
Transfer Taxes & Fees
Transfer Tax Rate
No state transfer tax
Recording fees and document recording tax apply
Local Tax Incentives
Opportunity Zone Investment
Tax deferral and potential exclusion for investments in designated opportunity zones
Eligibility: Properties located in designated Louisiana Opportunity Zones
Louisiana Enterprise Zone Program
Tax credits for businesses creating jobs in designated enterprise zones
Eligibility: Job-creating businesses meeting wage and benefit requirements
Industrial Tax Exemption Program
Property tax exemptions for qualifying industrial investments
Eligibility: Manufacturing and industrial facilities meeting investment thresholds
Opportunity Zones
Number of Zones
3
Key Locations
- Downtown Alexandria
- South Alexandria
- Pineville Area
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
148,171
Growth: +0.2% annually
Median Income
$56,492
Unemployment
5.2%
Job Growth
+1.1% annually
Economic Drivers
Market Trends
Median Home Price
$220,000
Average Rent
$800/mo
Cap Rates
6.5-8.2%
Demographics
Median Age
37.9 years
Bachelor's Degree+
22.1%
Owner Occupied
68.3%
Property Type Analysis
Investment opportunities by asset class
Single-Family Rental
Primary investment opportunity with stable demand from healthcare workers, government employees, and industrial workers.
Market Metrics
- Cap Rates: 7.2%
- Vacancy Trends: Moderate vacancy around 8-10% due to economic sensitivity and outmigration
- Demand Forecast: Stable demand supported by healthcare employment and regional economic role
Risk Factors
- Population decline and outmigration trends
- Limited economic diversification
- Hurricane and flood risk exposure
- Aging housing stock requiring maintenance
Opportunities
- Healthcare employment stability
- Government sector employment
- Affordable entry prices for investors
- Opportunity zone benefits in select areas
Multifamily
Good opportunities with diverse tenant base from healthcare workers, students, and service employees.
Market Metrics
- Cap Rates: 6.8%
- Vacancy Trends: Higher vacancy around 10-12% due to declining rents and economic challenges
- Demand Forecast: Cautious outlook due to population trends but supported by employment stability
Risk Factors
- Declining rental rates and demand
- Competition from single-family rentals
- Economic dependence on healthcare sector
- Limited population growth
Opportunities
- LSU Alexandria student housing
- Healthcare worker housing demand
- Value-add opportunities in older properties
- Government employee rental market
Industrial
Limited but stable opportunities supported by manufacturing, healthcare, and regional distribution.
Market Metrics
- Cap Rates: 8.2%
- Vacancy Trends: Low industrial vacancy around 6-8% due to limited supply and regional demand
- Demand Forecast: Stable demand from existing manufacturers and healthcare expansion
Risk Factors
- Limited industrial growth potential
- Dependence on existing major employers
- Transportation infrastructure limitations
- Competition from larger Louisiana markets
Opportunities
- Healthcare facility expansion
- Regional distribution and logistics
- Manufacturing support services
- Agricultural processing facilities
Office
Limited opportunities with government and healthcare demand offset by economic constraints.
Market Metrics
- Cap Rates: 7.8%
- Vacancy Trends: Moderate vacancy around 15-18% due to limited economic growth and remote work
- Demand Forecast: Stable but limited demand from government and healthcare tenants
Risk Factors
- Limited economic growth and expansion
- Remote work reducing office demand
- Competition from newer suburban facilities
- Aging downtown office stock
Opportunities
- Government tenant stability
- Healthcare office demand
- Professional services growth
- Opportunity zone benefits for downtown properties
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Alexandria
Historic downtown core with government offices, healthcare facilities, and cultural attractions
Investment Thesis
Strong rental demand from government workers and healthcare professionals, opportunity zone benefits, and cultural tourism appeal, though limited inventory and aging infrastructure.
Median Price
$185,000
Price Growth
+15.2% YoY
Rental Yield
8.5%
Days on Market
42 days
Key Highlights
Development Pipeline
Historic preservation projects, government facility upgrades, and riverfront development
South Alexandria
Residential area with mix of single-family homes and affordable housing options
Investment Thesis
Value-oriented rental market with stable demand from working families and service workers, though higher vacancy risk and economic sensitivity.
Median Price
$165,000
Price Growth
+12.8% YoY
Rental Yield
9.2%
Days on Market
48 days
Key Highlights
Development Pipeline
Affordable housing initiatives and infrastructure improvements
Pineville
Neighboring city across Red River with suburban development and industrial facilities
Investment Thesis
Family rental demand with industrial employment support and newer housing stock, though bridge dependency and limited growth.
Median Price
$195,000
Price Growth
+14.1% YoY
Rental Yield
7.8%
Days on Market
45 days
Key Highlights
Development Pipeline
Industrial expansion and residential subdivisions
Garden District
Established residential area with historic homes and tree-lined streets
Investment Thesis
Stable rental market with professional tenants and historic charm, though higher maintenance costs and limited appreciation potential.
Median Price
$245,000
Price Growth
+8.9% YoY
Rental Yield
6.8%
Days on Market
38 days
Key Highlights
Development Pipeline
Historic preservation and infill development
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Compare Markets
See how this MSA stacks up against others
Compare Markets
| Metric | Alexandria (Current) | Shreveport Bossier City | Monroe | Lake Charles |
|---|---|---|---|---|
| Population | 4.0M | 4.0M | 4.0M | 4.0M |
| Median Property Price | $750K | $750K | $750K | $750K |
| Average Cap Rate | 5.2% | 5.2% | 5.2% | 5.2% |
| Job Growth Rate | 2.1% | 2.1% | 2.1% | 2.1% |
| Rental Yield | 4.8% | 4.8% | 4.8% | 4.8% |
| Days on Market | 25 | 25 | 25 | 25 |
Frequently Asked Questions
Common questions about Alexandria 1031 exchanges
Alexandria offers high cap rates of 6.5-8.2%, low property taxes at 0.76%, stable healthcare and government employment, and affordable entry prices with median homes at $220,000. The market provides value-oriented opportunities in Central Louisiana.
Healthcare is a major economic driver with multiple hospital systems and medical facilities providing stable employment. This creates consistent rental demand from healthcare workers and supports the local economy during economic downturns.
Yes, the region has 3 designated Opportunity Zones including downtown Alexandria and South Alexandria. Louisiana has 150 total opportunity zones, offering potential tax benefits for qualifying investments.
Property taxes are very competitive at 0.76%, significantly below the national average of 1.02% and below the state average of 0.87%. Rapides Parish offers some of the lowest property tax rates in Louisiana.
Alexandria faces population decline, limited economic diversification, and outmigration trends. However, the healthcare sector provides stability, and low property costs create opportunities for value-oriented investors seeking higher cap rates.