Invest In Apartment Buildings In Hattiesburg, MS

What Drives Rental Demand In Hattiesburg

Rental demand in Hattiesburg comes from 12,971 renter households, which is 62.8% of occupied housing (ACS 2020–2024). Renter households rose 14.5% over five years while population grew 5.5%. More of Hattiesburg's residents are renting than before.

Median household income in Hattiesburg, MS is $46,342, up 33.4% over five years. Resident employment rose 12.1% and the unemployment rate was 8.7% in the latest survey. Income growth of 33.4% has outrun rent growth of 27.1%, so rents here are more affordable relative to earnings than they were.

In a renter-majority market like Hattiesburg, apartments house people across most ages and income levels. That broad tenant base is one reason we follow it.

Hattiesburg Rent Trends And Supply

Median gross rent in Hattiesburg, MS is $1,005 a month, up 27.1% from $791 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That pace was well above long-run norms. We treat it as history, not as a forecast, when we underwrite a building.

At 7.3%, Hattiesburg's rental vacancy rate sits in a normal range. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 51.5% of renters spend 30% or more of their income on housing. That limits how hard rents can be pushed, so renewals and retention matter more than big increases.

About 36.3% of homes in Hattiesburg are in buildings with 5 or more units, roughly 8,447 homes. That count rose 18.1% over five years, a sign of meaningful new apartment construction that newer buildings will compete with. The median home was built in 1981, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation.

Hattiesburg By The Numbers

Among the 16 Mississippi cities we track, Hattiesburg ranks 12th for median gross rent, 2nd for renter share and 6th for five-year rent growth. Its rents fall in the middle of the pack. Put in counts rather than percentages, that is roughly 2,521 more residents, 1,643 more renter households and 1,295 more homes in buildings with 5 or more units than five years earlier. Growth in renter households and new apartment homes has been roughly in balance.

How Hattiesburg Compares With The Mississippi Average

Hattiesburg's median gross rent of $1,005 is above the Mississippi median of $954, and its renter share is 62.8% compared with 30% statewide.

Can Tenants Afford Hattiesburg Rents?

At $1,005 a month, the median Hattiesburg rent adds up to $12,060 a year, or roughly 26% of what the median household earns. Under the common 30% guideline, a household needs about $40,200 a year to cover that rent comfortably. That's a heavier load than the Mississippi average of 20.3%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

In dollars, Hattiesburg rent climbed $214 a month over five years and household income climbed $11,603 a year. Income has outpaced rent, which means tenants have a bit more room in their budgets than they did five years ago.

Hattiesburg Rental Market In Numbers

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Hattiesburg, MS has 48,619 residents, up 5.5% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Hattiesburg, MS is $46,342, up 33.4% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Hattiesburg, MS is $1,005 a month, up 27.1% over five years (U.S. Census ACS 2020–2024).
• 62.8% of households in Hattiesburg, MS rent, about 12,971 renter households (U.S. Census ACS 2020–2024).
• 36.3% of homes in Hattiesburg, MS are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Hattiesburg, MS is 7.3%, and 51.5% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Hattiesburg, MS was built in 1981 (U.S. Census ACS 2020–2024).

What We Look For In A Hattiesburg Apartment Building

In Hattiesburg we focus on apartment buildings with 5 or more units. Some are stabilized and well run. Others have below-market rents or deferred maintenance that a better operator can fix. Either way, the deal has to make sense on current numbers.

Property taxes are a big line item for any Mississippi apartment building. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Mississippi has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Mississippi reflect hurricane and flood exposure, so we get a quote before we make an offer.

After a stretch of fast rent growth, we keep rent assumptions modest and leave room for concessions if new supply opens nearby.

Questions To Ask About An Apartment Syndication In Hattiesburg

Whoever the sponsor is, these are the questions we would want answered about any apartment syndication in Hattiesburg, based on the local numbers above.

• What vacancy does the plan assume? Rental vacancy in Hattiesburg is 7.3%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 27.1% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• How big is the repair reserve? The median home in Hattiesburg was built in 1981, and even newer buildings need money set aside for roofs, HVAC and appliances.
• How will the building compete with new supply? Homes in 5+ unit buildings in Hattiesburg rose 18.1% over five years, so newer properties are part of the competition.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Hattiesburg Apartment Syndication Works

A syndication splits the work from the capital. As general partner, Skyline sources and buys the building, sets the business plan and runs it with a property manager. Limited partners invest money, own part of the property and receive reports, but they don't manage anything day to day.

Syndications are long-term and illiquid, and capital usually stays committed for several years. Results are never certain. Most offerings are limited to accredited investors, and the rules depend on whether a deal uses Rule 506(b) or Rule 506(c). See investing with Skyline Capital for how we work with limited partners.

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