Jackson , Mississippi

The Jackson metro area continues to experience excellent appreciation, and rents, relative to the value of the homes, are very high as compared to other areas of the country.

According to the 2000 census, median single-family home price in the city of Jackson was $64,400, making it one of the least expensive metropolitan housing areas in the nation. 42% of the homes are rented.

Property taxes are also relatively low, because the low tax rates and the low housing prices combine to hold down annual taxes.
The housing appreciation rates in Jackson are excellent. According to data from the National Association of Realtors, Jackson saw single-family home appreciation of a stellar 8.9% year-over- year at the end of Q3 2006 (compared to -1.2% for the rest of the US), placing it in the top 15th percentile of metro areas in the U.S. Jackson is ranked as the 9th most undervalued metro region in the U.S., placing it in the top 3% out of 317 metro areas. In 2006, Jackson was named one of America's Top 30 Livable Communities by Partners for Livable Communities.

Low Housing Prices, High Rents

Despite the low housing prices, rents, relatively speaking, are much higher. According to HUD statistics, the 50th percentile rent for a 3-bedroom dwelling in 2006 was $826 per month, so it is not surprising that many houses can provide positive cash flow, even when servicing a 90% mortgage. Realty Trac reported that home prices were up 2.8% in Jackson, Mississippi in September 2008 from the same time in 2007.

The economics in Jackson are clearly favorable for investment. The key to investing in Jackson lies in careful selection of homes in the right locations and neighborhoods, and careful selection of tenants and property managers. At Out Estate Investments, we have concentrated on becoming experts in the Jackson area, so we perform the due diligence on behalf of our investors to get the right homes with the right tenants to earn safer, superior returns on investment. Hurricane Katrina
Jackson suffered relatively minor damage from Hurricane Katrina as compared to the coastal areas. Many people displaced by Katrina moved to Jackson to find housing and work, which further drove up rents and home prices. This influx has had the effect of increasing rents, raising housing prices, and lowering vacancy rates. These factors, in combination with the GO Zone tax incentives, make Jackson an excellent location for real estate acquisitions.

HUD Section 8

The demand for affordable good quality housing in Jackson is still high. Many renters, including Katrina victims, are eligible to obtain rent subsidies from the U.S. Dept. of Housing and Urban Development (HUD) under Section 8 or from FEMA. The advantage to landlords with Section 8 tenants is that the rent subsidies are paid directly to the landlord so there’s virtually no risk of non-payment of rent.

Out Estate always ensures homes sold with or for HUD tenants have passed or will pass all HUD requirements. Out Estate uses both Section 8 tenants and private management companies in the area to fill our properties. With our extensive background in acquisitions and financing, and the ground teams we have in the Jackson area, we are able to provide superior expertise and investment guidance to all of our clients