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Is Hattiesburg a Good Place to Buy Rental Property?

Considering rental property in Hattiesburg, Mississippi? Explore the numbers and factors investors should evaluate before purchasing an investment property.

BUYERSINVESTORS

By April Hawkins, Owner/Broker

9/29/20267 min read

Southern Mississippi University Students representing Hattiesburg, MS

Two Universities Help Create a Built-In Renter Population

One of the things I like about Hattiesburg from an investment standpoint is that we are a college town—and not just because of one university.

Hattiesburg is home to both The University of Southern Mississippi and William Carey University. That creates an ongoing population of undergraduate students, graduate students, medical students, faculty, staff, and other university employees who need housing.

Not every student rents off campus, of course. Southern Miss offers campus housing, as does William Carey. However universities still contribute to the overall need for housing in a community. Graduate students, upperclassmen, married students, faculty members, visiting professionals, and university employees may all be potential renters.

William Carey is particularly interesting because it has been growing. The university reported that residential enrollment at its Hattiesburg campus increased 50% from 2022 to 2025, while total graduate and undergraduate enrollment across the university increased from 4,502 to more than 5,140 in just one year. Its College of Osteopathic Medicine also brings approximately 200 new medical students into a class each year.

That doesn't mean I would buy any house near a university and assume it will stay rented. It does mean higher education provides Hattiesburg with a source of housing demand that many communities our size simply don't have.

Rental Demand in Hattiesburg Isn't Just About College Students

I wouldn't want to base an investment decision entirely on students, however. One of Hattiesburg's strengths is that its economy has several different anchors.

Healthcare is a major part of the local economy. Current economic data identifies Forrest General Health Services, The University of Southern Mississippi, Hattiesburg Clinic, and Camp Shelby among Forrest County's largest employers. Forrest General alone employs approximately 3,500 people, while Hattiesburg Clinic employs more than 2,200. Camp Shelby adds another large employment and military presence to the area.

That matters to me because a rental market supported by several types of employment is generally more attractive than one dependent on a single employer or industry.

Our potential tenant population can include students, healthcare workers, university employees, military-connected households, young professionals, families, people relocating to the area, and people who simply prefer to rent.

Hattiesburg Housing Is Still Relatively Affordable

Purchase price is another reason investors may find Hattiesburg interesting.

As of summer 2026, Redfin reported a Hattiesburg median home sale price of approximately $225,000.

Of course, an investor doesn't necessarily need—or want—to purchase the median-priced home. There are neighborhoods and properties throughout the Hattiesburg area at considerably different price points.

What matters is the relationship between what you pay for the property and what the property can realistically rent for.

A $130,000 house renting for $1,300 per month can potentially be a better investment than a beautiful $300,000 house renting for $2,000 per month.

The more expensive property may be nicer.

It may appreciate.

It may attract a different tenant.

But if your goal is cash flow, the numbers need to support the purchase.

Don't Buy a Rental Based on Rent Alone

This is where new investors can get themselves into trouble.

Let's say you find a house for $150,000 and believe it will rent for $1,500 per month.

At first glance, that sounds pretty good.

That's $18,000 per year in gross rental income.

But gross rent isn't profit.

From that $18,000, you may need to account for property taxes, insurance, maintenance, repairs, vacancy, property management, lawn care or utilities if the landlord pays them, leasing expenses, capital improvements, and your mortgage payment if the property is financed.

An investor should be much more interested in what remains after expenses than in the rent number printed at the top of the spreadsheet.

Property Taxes Deserve Extra Attention on Investment Property

One expense I would pay particular attention to in Mississippi is property taxes.

An investor shouldn't assume the tax amount shown for the current homeowner will necessarily be the same amount they will pay after purchasing the property.

Owner-occupied and investment properties can be treated differently for tax purposes, and that difference can have a significant impact on cash flow.

Before I decide whether a rental property works financially, I want to use a realistic estimate of what my taxes will actually be as an investor, not simply copy the seller's current tax bill into my calculations.

A few hundred dollars per year may not change the investment. A much larger difference certainly can.

Insurance Can Make or Break the Numbers Too

Insurance is another number I want early.

In South Mississippi, I would never recommend analyzing a rental property by simply using a generic national estimate for insurance.

The age of the house, roof, construction, condition, location, claims history, and insurance market can all affect the cost. Flood insurance may also need to be considered for some properties.

A property that appears to cash flow beautifully with an estimated $1,500 annual insurance premium may look very different if an actual quote comes back substantially higher.

Get the quote.

Then run the numbers.

Vacancy Is a Real Expense—Even in a Market With Rental Demand

Having universities and large employers nearby doesn't mean your property will be occupied 365 days a year.

Tenants move.

Properties need repairs between occupants.

A house may take several weeks to lease.

Sometimes an investor intentionally holds a property vacant while completing improvements.

That's why I think investors should include a vacancy allowance in their analysis rather than assuming twelve perfect rent payments every year.

If the deal only works when absolutely everything goes right, I probably don't consider it a very strong deal.

I would rather underestimate the return and be pleasantly surprised than build an investment plan around perfect circumstances.

Maintenance Is Not Optional

Rental houses require maintenance.

Even a house that is in excellent condition when you purchase it will eventually need something.

HVAC systems fail. Water heaters leak. Appliances stop working. Plumbing clogs. Roofs age. Tenants call.

And then there are the larger expenses that don't happen every year but absolutely need to be considered: roofs, HVAC replacement, flooring, exterior repairs, and major systems.

I don't necessarily expect every property to have a major repair every year. But I do want the investment to generate enough income that one repair doesn't destroy the entire year's return.

Look at the Rent Comparables Before You Make an Offer

I wouldn't recommend buying an investment property because someone says, “You could probably rent this for $1,800.”

Probably isn't good enough.

I want to look at actual rental competition and ask:

What are similar houses being offered for?

How many comparable rentals are currently available?

How does this property's condition compare?

Does it have more or fewer bedrooms?

Does it have a garage?

A fenced yard?

Updated finishes?

Is the location more or less desirable?

Current rental data shows that Hattiesburg has an active rental market, but it also shows available rental inventory. That's important. Demand exists, but landlords still compete for renters.

That's why I don't automatically use the highest rent I can find online when analyzing a property.

I would rather base the deal on a conservative rent estimate and have room for upside.

Don't Forget Property Management

Even if you're planning to manage the property yourself, I think it's worth understanding what professional management would cost.

Why?

Because your circumstances may change.

You may move.

Your portfolio may grow.

You may decide answering maintenance calls and collecting rent isn't how you want to spend your time.

And eventually, someone else may evaluate the property as an investment and calculate management as an expense.

If a property only cash flows because you assign your own time a value of zero, that's something worth recognizing.

Cash Flow Isn't the Only Way a Rental Can Make Money

Monthly cash flow is important, but it's not the only potential benefit of owning rental real estate.

An investment property may potentially provide returns through several avenues.

Your tenant's rent may help pay down your mortgage principal over time. The property may appreciate, although appreciation is never guaranteed. Rents may increase over time. Real estate ownership may also have tax implications that investors should discuss with their tax professional.

I like investments where the numbers make sense today, without requiring dramatic appreciation to rescue the deal.

If appreciation happens, wonderful.

I just don't want that to be the entire investment strategy.

Have an Exit Strategy Before You Buy

I also like to ask investors:

“What happens if you don't want this property five or ten years from now?”

Could you reasonably sell it to another investor?

Would an owner-occupant potentially want it?

Could it serve another purpose?

A property with several possible exit strategies gives an investor options.

That's one reason I often like ordinary single-family homes as rentals. If they're purchased correctly and maintained well, the future buyer pool may include both investors and people who simply want the house as their home.

So, Is Hattiesburg a Good Place to Buy Rental Property?

I think Hattiesburg offers several characteristics that make it worth serious consideration for rental-property investors.

We have two universities bringing students, faculty, and staff into the community. William Carey is growing. Southern Miss is a major university and employer. Hattiesburg also serves as a regional healthcare center, and we have military and other employment through Camp Shelby and the surrounding economy. Those are meaningful sources of potential rental demand.

But I wouldn't buy a property simply because it is located in Hattiesburg.

I want to know:

What will it realistically rent for? What are the taxes? What will insurance cost? What repairs does it need? What should we budget for maintenance and vacancy? What will property management cost? And most importantly—what is left after all of those expenses?

If those numbers work, then we may have something worth pursuing.

Thinking About Buying an Investment Property in Hattiesburg?

If you're considering a rental property in Hattiesburg or the surrounding South Mississippi area, I can help you look beyond the listing price.

We can evaluate comparable sales, likely rent, property condition, location, potential tenant base, and the expenses that may affect your return before you make an offer.

I don't want to help you simply buy a rental property.

I want to help you buy one whose numbers make sense.

If you're considering an investment property in the Hattiesburg area, contact me and let's analyze the deal before you buy.

April Hawkins, Owner/Broker
Field & Vine Realty
Where wise choices take root.

Is Hattiesburg, MS a Good Place to Buy Rental Property?

If you're considering buying investment property in South Mississippi, Hattiesburg is certainly a market worth looking at. We have relatively affordable housing, two universities, a large healthcare sector, Camp Shelby nearby, and a steady population of people who need somewhere to live but aren't necessarily ready—or interested—in purchasing a home.

Does that mean every rental property in Hattiesburg is a good investment? Absolutely not.

When I'm looking at an investment property, I don't want to begin with, “Is Hattiesburg a good rental market?” I want to begin with, “Does this particular property make sense as a rental?”

A strong market can't fix bad numbers. But buying the right property in an area with multiple sources of rental demand can certainly work in an investor's favor.