1031 Exchange in Jackson MSA
The Jackson MSA offers ultra-affordable 1031 exchange opportunities with high cap rates, stable rental demand driven by government and healthcare sectors, and exceptionally low entry costs in Mississippi's capital city.
Population
606,178
Key Industries
State Government, Healthcare (UMMC), Education
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
1.8% - 2.0%
Assessment Method
Assessed Value (Mississippi Property Tax Code)
MSA rate (1.8%) vs State average (1.2%)
+50% above state average
Transfer Taxes & Fees
Transfer Tax Rate
No state transfer tax
Local recording fees and title insurance costs apply
Local Tax Incentives
Mississippi Development Authority Incentives
Various state incentives for business development and job creation
Eligibility: Qualifying commercial and industrial developments
Historic Tax Credits
State and federal historic preservation tax credits
Eligibility: Properties in historic districts and qualifying historic structures
Opportunity Zones
Number of Zones
3
Key Locations
- Downtown Jackson
- West Jackson
- South Jackson
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
606,178
Growth: -1.2% annually
Median Income
$60,489
Unemployment
4.2%
Job Growth
+0.8% annually
Economic Drivers
Market Trends
Median Home Price
$79,817 - $160,000
Average Rent
$850/mo
Cap Rates
10.0% - 12.5%
Demographics
Median Age
38.1 years
Bachelor's Degree+
29.0%
Owner Occupied
52.3%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand driven by government employees and healthcare workers with stable institutional tenant base.
Market Metrics
- Cap Rates: 11.2%
- Vacancy Trends: Moderate vacancy at 8.5% due to economic challenges but stable government employment
- Demand Forecast: Stable demand from government and healthcare sectors supports consistent performance
Risk Factors
- Population decline affecting overall demand
- Economic challenges in the region
Opportunities
- Ultra-high cap rates for cash flow investors
- Stable government employment base
Single-Family Rental
Popular with government employees and healthcare workers seeking affordable housing solutions.
Market Metrics
- Cap Rates: 12.5%
- Vacancy Trends: Moderate vacancy at 9.2% with good tenant retention in quality properties
- Demand Forecast: Government and healthcare employment provides stability despite regional challenges
Risk Factors
- Population decline limiting tenant pool growth
- Economic challenges affecting rental rates
Opportunities
- Exceptional cap rates for cash flow focus
- Low acquisition costs enable portfolio building
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Jackson
Historic downtown core with government buildings and ongoing revitalization efforts
Investment Thesis
Opportunity zone benefits, ultra-low entry costs, and potential for appreciation as downtown revitalization continues with state government support.
Median Price
$65,000
Price Growth
+12.5% YoY
Rental Yield
12.8%
Days on Market
45 days
Key Highlights
Development Pipeline
State-funded downtown revitalization projects and historic preservation initiatives
Northeast Jackson
Established residential area with higher-income demographics and better schools
Investment Thesis
Stable rental demand from government employees and healthcare workers, consistent occupancy rates, and affordable entry points for quality properties.
Median Price
$192,000
Price Growth
+9.7% YoY
Rental Yield
8.5%
Days on Market
35 days
Key Highlights
Development Pipeline
Limited new construction, focus on existing home improvements and renovations
Madison County (Suburb)
Affluent suburban area with excellent schools and newer construction
Investment Thesis
Premium rental market serving executives and professionals, higher rents justify higher acquisition costs.
Median Price
$285,000
Price Growth
+6.2% YoY
Rental Yield
6.8%
Days on Market
28 days
Key Highlights
Development Pipeline
Continued suburban development and upscale housing projects
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Compare Markets
See how this MSA stacks up against others
Compare Markets
| Metric | Jackson (Current) | Shreveport | Monroe | Hattiesburg |
|---|---|---|---|---|
| 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 Jackson 1031 exchanges
Jackson offers exceptional cap rates (10-12%) with ultra-low entry costs, stable rental demand from state government and healthcare employment, and median home prices starting around $80,000.
State government employs thousands of workers in Jackson, providing stable rental demand. Government employees typically have steady income and longer tenure, making them reliable tenants.
Yes, Jackson has three designated Opportunity Zones in downtown, west, and south areas, offering potential tax benefits for qualifying investments including deferral and possible exclusion of capital gains.
The economy is anchored by Mississippi state government, University of Mississippi Medical Center, Baptist Health Systems, and various manufacturing operations, providing stability despite regional economic challenges.
Low acquisition costs enable portfolio diversification and exceptional cash-on-cash returns, though investors should focus on cash flow rather than appreciation given population decline trends.