1031 Exchange in Jefferson City MSA
The Jefferson City MSA offers stable 1031 exchange opportunities with moderate cap rates, consistent rental demand driven by state government employment, and competitive property taxes in Missouri's capital city.
Population
150,447
Key Industries
State Government, Healthcare, 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
1.08% - 1.15%
Assessment Method
Assessed Value (Missouri Property Tax Code)
MSA rate (1.09%) vs State average (0.91%)
+20% above state average
Transfer Taxes & Fees
Transfer Tax Rate
No state transfer tax
Local recording fees and title insurance costs apply
Local Tax Incentives
Missouri Department of Economic Development Incentives
Various state incentives for business development and job creation
Eligibility: Qualifying commercial and industrial developments
Jefferson City Economic Development
Local incentives for business expansion and retention
Eligibility: Companies creating jobs and investing in the area
Opportunity Zones
Number of Zones
1
Key Locations
- Downtown Jefferson City
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
150,447
Growth: +0.5% annually
Median Income
$72,425
Unemployment
3.4%
Job Growth
+1.8% annually
Economic Drivers
Market Trends
Median Home Price
$230,000 - $319,000
Average Rent
$985/mo
Cap Rates
8.0% - 10.0%
Demographics
Median Age
39.5 years
Bachelor's Degree+
36.9%
Owner Occupied
65.8%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand driven by government workers, healthcare employees, and students with stable employment base.
Market Metrics
- Cap Rates: 9.2%
- Vacancy Trends: Low vacancy at 6.8% due to government employment stability
- Demand Forecast: Stable demand from state government operations and healthcare growth
Risk Factors
- Dependence on state government budget cycles
- Limited population growth
Opportunities
- State government employment stability (28,000+ jobs)
- Healthcare sector growth
Single-Family Rental
Popular with government workers, healthcare professionals, and families seeking quality housing.
Market Metrics
- Cap Rates: 10.0%
- Vacancy Trends: Very low vacancy at 5.2% with excellent tenant retention
- Demand Forecast: Strong fundamentals with government employment and healthcare base
Risk Factors
- Higher property taxes affecting returns
- State budget cycles affecting employment
Opportunities
- Stable government employment base
- Growing healthcare sector
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Jefferson City
Historic downtown core with state government proximity and ongoing revitalization
Investment Thesis
Opportunity zone benefits, state government worker housing demand, and potential for appreciation as downtown continues to develop.
Median Price
$167,500
Price Growth
+24.6% YoY
Rental Yield
10.8%
Days on Market
28 days
Key Highlights
Development Pipeline
Downtown revitalization and mixed-use development projects
West Jefferson City
Residential area with family amenities and good schools
Investment Thesis
Family rental market, good schools, and appeal to government workers and healthcare professionals.
Median Price
$285,000
Price Growth
+6.8% YoY
Rental Yield
8.5%
Days on Market
25 days
Key Highlights
Development Pipeline
Residential development and school improvements
East Jefferson City
Growing area with newer development and commercial activity
Investment Thesis
Growth area with newer housing stock, commercial development, and appeal to young professionals.
Median Price
$265,000
Price Growth
+5.2% YoY
Rental Yield
9.2%
Days on Market
30 days
Key Highlights
Development Pipeline
Commercial and residential development projects
Holts Summit
Suburban community with family appeal and proximity to Jefferson City
Investment Thesis
Suburban family rental market, good schools, and appeal to government workers seeking suburban lifestyle.
Median Price
$295,000
Price Growth
+4.8% YoY
Rental Yield
8.0%
Days on Market
32 days
Key Highlights
Development Pipeline
Suburban residential development and infrastructure
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Compare Markets
See how this MSA stacks up against others
Compare Markets
| Metric | Jefferson City (Current) | Columbia | Springfield | Cape Girardeau |
|---|---|---|---|---|
| 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 Jefferson City 1031 exchanges
Jefferson City offers strong cap rates (8-10%), stable rental demand from state government employment (28,000+ jobs), moderate property taxes (1.09% vs. 1.02% national), and exceptional appreciation in downtown areas (up to 24.6%).
State government provides 28,000+ jobs including 17,000+ state employees, creating stable rental demand. Government employment offers job security and consistent income, supporting reliable rental payments and low vacancy rates.
Yes, downtown Jefferson City is a designated Opportunity Zone offering potential tax benefits for qualifying investments including deferral and possible exclusion of capital gains, with strong appreciation already demonstrated.
The economy is anchored by Missouri state government (28,000+ jobs), healthcare (Capital Region Medical Center), financial services (Central Bancompany, Hawthorn Bancshares), manufacturing, and education, providing diversified employment base.
Missouri has moderate property taxes (1.09% vs. 1.02% national) and no state transfer tax, but strong government employment stability, good cap rates, and opportunity zone benefits can provide attractive returns for investors.