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The 5 Best Places to Buy Rental Property in Louisiana

Photo of the French Quarter in New Orleans

New Orleans | Baton Rouge | Shreveport | Metairie | Lafayette | Slidell | How to invest in rental property

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💰 What is the best place to buy rental property in Louisiana? 💰
The best place to buy rental property in Louisiana is New Orleans, followed by Baton Rouge and Shreveport.
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From New Orleans’ booming tourism trade to Shreveport’s rising rents, Louisiana presents plenty of opportunities for real estate investors. Home values are steadily appreciating across the state, but the average home value is still just $213,658 — nearly 67% less than the national average.

Although there are plenty of Louisiana cities to invest in, we’ve narrowed it down to the Bayou State’s five most populous towns. We looked at data on affordability, home price trends, short-term rental opportunities, and amenities to assess each city’s investment potential.

If one of the cities on our list catches your eye, the next step is connecting with local real estate experts — and our friends at Clever Real Estate make it simple to find top-rated agents.

Clever is a free, no-obligation agent matching service that will introduce you to qualified, pre-vetted realtors from trusted brokerages including Keller Williams, RE/MAX, and Coldwell Banker. You can meet as many agents as you like until you find the best one to advise you on your real estate investment journey.

👋 Contact Clever’s licensed concierge team to meet top-rated real estate agents in Louisiana today!

1. The Best Place to Buy Rental Property in Louisiana: New Orleans

With more than 130 annual festivals — including its famous Mardi Gras parades — New Orleans is a hotspot for tourism. In 2019 alone, millions of visitors spent more than $10 billion within the city. That translates into a goldmine of opportunities for short-term rentals, making this one of the best places to buy rental property in Louisiana.

As of May 2022, the average home price in New Orleans was approximately $276,000, a sharp rise from $213,000 in 2016. The average rent for a two-bedroom apartment is $2,188 per month.

But if you’re interested in short-term rentals, you could strike it rich. The average Airbnb host earns an average of $3,440 per month, with rates fluctuating during the city’s annual event season.

2. Baton Rouge

As Louisiana’s capital, Baton Rouge is a historic city with plenty to offer real estate investors. The average home price surpassed $227,000 in 2022— appreciating an impressive 25% since 2016.

Typical rent for a two-bedroom place costs $1,067 per month, a 12% increase in the past year alone. Louisiana State University (LSU) draws more than 35,000 students to campus each fall, ensuring a stable population of renters who will always need a place to call home.

If you’re more interested in short-term rentals, LSU’s football season will be your peak opportunity to earn a profit. Even with seasonal swings in demand, short-term real estate properties in Baton Rouge still bring in $2,220 during the average month.

Find property the way the pros do.

Many experienced investors drive for dollars. You literally drive through communities to discover distressed-looking homes. If you find one, you reach out to the homeowners and ask if you can buy it from them.

A driving for dollars app like DealMachine helps you track your progress and pulls property info and owner contact details. It even works with direct mail services so you can scale up your outreach. Try DealMachine for free.

3. Shreveport

Perched on the border of Texas and Louisiana, Shreveport is an ideal market for real estate investors who don’t have enough capital to buy into the state’s pricier cities. The average single-family home costs just $127,000 — 109% less than the national average.

Real estate investors looking for long-term tenants can find worthwhile rental opportunities in this market. The average two bedroom apartment costs $1,404 per month, but rates are rising fast. In the past year alone, rent in Shreveport soared by 38%.

4. Metairie

With an average home price of $328,000, Metairie is the most expensive market on our list. Skyrocketing home prices reflect major gains since 2016, when the average home cost around $230,000.

The median rent for a two-bedroom apartment has fluctuated throughout 2022, dropping as low as $1,206 and rising as high as $1,423. Long-term rentals are definitely more lucrative than short-term rentals; Airbnb hosts in Metairie earn just $1,102 per month on average.

5. Lafayette

Located in the Bayou State’s southwestern corner, Lafayette offers comparatively affordable home prices that average $206,000 for a single-family home. Property values are appreciating quickly, with an impressive 12% growth year-over-year.

Lafayette residents pay an average rent of $1,044 per month for a 913 square foot unit. Surprisingly, short-term rentals are also respectably profitable in Lafayette — hosts earn an average of $1,639 per month with a 69% occupancy rate.

Bonus: Slidell

Located about 40 minutes east of New Orleans, Slidell is a small city halfway between the Big Easy and the casinos that draw people to the Mississippi Gulf Coast.

The central location is ideal for short-term rental properties, which command an average daily rate of $325. With an impressive 76% occupancy rate, this would generate $4,399 in monthly income for investors.

Next Steps for Your Rental Property Investment

From New Orleans’ year-round festivals to Slidell’s under-the-radar short-term rental market, Louisiana offers an impressive array of real estate investment opportunities.

If you want to find great deals on rental property, we recommend and DealMachine.

Whether you’re a native resident or an out-of-state investor, you’ll need a local real estate agent on your side. A knowledgeable realtor can help you spot promising rental property opportunities, invest in up-and-coming markets, and negotiate for favorable deals.

Our friends at Clever Real Estate have built a network of trusted partner agents in Louisiana and beyond. It’s free to meet agents through Clever, with zero obligation!

👋 Next steps: Talk to an expert!
If you’re weighing your options for buying or selling a house, our friends at Clever can help! Clever’s licensed concierge team is available to answer your real estate questions, or help you find the right agent for your needs.

Meet the Best Agents in Louisiana Today!

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What is the best place to buy rental property in Louisiana?

New Orleans is the best place to buy rental property in Louisiana, followed by Baton Rouge and Shreveport. Learn how population growth, job opportunities, and home values impact rental property investments.

Is rental property a good investment?

In general, rental property is considered a sound investment, but a rental property’s success or failure depends on both local market conditions and business strategy. Learn how to spot good investment opportunities — and save time, energy, and money — before buying a rental property in Louisiana.

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