1st Advantage MortgageInvestors buying in Cape Girardeau, MO are measured on the rent the property earns. Locally, median gross rent is $876 and median real estate taxes are $1,380 a year, which together set how much loan a rent can carry.
Local data for Cape Girardeau investors
For Cape Girardeau, the latest five-year ACS shows a median gross rent of $876 (about 15% below the Missouri median of $1,033) and a median owner-occupied value of $196,300 (about 15% below the Missouri median of $230,300). The gross rent-to-value ratio for Cape Girardeau works out to 5.4% (twelve months of median rent divided by median value), a lean ratio that leaves little room for taxes, insurance and dues. The figure combines all rental types with all owner-occupied homes, so it is a screening number and not an appraisal.
| Indicator | Missouri | Cape Girardeau | Difference |
|---|---|---|---|
| Annual property tax bill, median | $1,948 | $1,380 | -29% |
| Household income, median | $70,702 | $55,658 | -21% |
| Typical owner-occupied value | $230,300 | $196,300 | -15% |
| Typical monthly rent | $1,033 | $876 | -15% |
| Persons per household | 2.40 | 2.27 | |
| Share in 2-4 unit buildings | 7.8% | 12.2% | +56% |
| Share of homes detached | 70.5% | 64.2% | -9% |
| Long commuters, 45 min plus | 11.5% | 6.0% | -48% |
| Workers on their own account | 9.0% | 7.1% | -22% |
| Renters paying 30%+ of income | 45.6% | 47.9% | +5% |
| Units sitting vacant | 11.2% | 12.7% | +13% |
| Typical construction year | 1978 | 1975 | |
| Households that rent | 31.9% | 46.0% | +44% |
| Tax as a share of home value | 0.85% | 0.70% | -17% |
| Residents (Census estimate) | 6,191,814 | 40,344 |
About 46.0% of occupied homes in Cape Girardeau are renter-occupied, well above the Missouri median of 32%, a balanced mix of owners and tenants. Incomes matter for rent growth: the median household earns $55,658, about 21% below the Missouri median of $70,702, and 48% of renters are already cost-burdened at 30 percent of income or more.
The kind of housing in Cape Girardeau
Cape Girardeau is dominated by detached homes (64% of units), which keeps most rental income tied to house comparables and puts maintenance squarely on the owner. With 1975 as the median build year, expect aging HVAC and roofs and ask for the dates of the last replacements.
About 13% of Cape Girardeau's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 7.0%.
How investors should read Cape Girardeau
At 5.4% gross, Cape Girardeau is a tight market for DSCR math, and investors often turn to interest-only structures, higher rents on renovated units or small multifamily to make the ratio clear. Mid-aged stock (median built 1975) means many roofs and HVAC units are near the end of their lives, so ask for installation dates. Renters are 46% of households, which gives investors a real tenant base to market to.
Taxes, insurance and hazards in Cape Girardeau
Homeowners in Cape Girardeau paid a median $1,380 in real estate taxes, well below the Missouri median of $1,948, an effective rate near 0.70% of home value against 0.85% statewide. In rent terms, the tax bill equals roughly 13% of twelve months of median rent.
County-level hazard data from FEMA (National Risk Index 1.20) shows Cape Girardeau County with relatively moderate overall risk and ice storms (relatively high), winter weather (relatively high) and earthquakes (relatively moderate) at the top of the list.
| Hazard in Cape Girardeau County, FEMA index | Level |
|---|---|
| Heat waves exposure | Relatively Moderate |
| Earthquakes exposure | Relatively Moderate |
| Winter weather exposure | Relatively High |
| Ice storms exposure | Relatively High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Cape Girardeau exclusions before trusting a premium estimate.
A worked DSCR test for Cape Girardeau
At the city medians a DSCR file in Cape Girardeau has $761 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $586 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
What MO law and Cape Girardeau require of landlords
This page does not claim to list every Cape Girardeau rental ordinance. Before you buy, call the city's planning or code office and Cape Girardeau County to ask about rental registration, inspections and short-term rental permits, and read any association declaration. On lodging taxes, a Cape Girardeau host should read this first. Missouri treats nightly vacation rental charges, including cleaning and service fees, as taxable sales, exempts stays of 31 or more consecutive days, and requires marketplace facilitators to collect, while local lodging and tourism taxes remain the owner's job unless the platform handles them.
A Cape Girardeau landlord must handle the deposit within 30 days after move-out under Missouri law. To end a month-to-month tenancy in Cape Girardeau, the landlord's notice period is Written notice; tenancy ends on a rent-paying date at least one month after the tenant receives it. On rent control, Cities and counties may not enact or enforce rent control ordinances (with narrow exceptions for subsidized/public property).
Other Missouri cities for context
Statewide context for Cape Girardeau: median home values in the other Missouri cities below run from $177,700 to $326,200, and Cape Girardeau is $196,300.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Springfield | 56% | $1,326 | $177,700 | 169,954 | $964 |
| Branson | 52% | $1,571 | $251,000 | 12,817 | $961 |
| O'Fallon | 19% | $3,609 | $326,200 | 93,801 | $1,443 |
| Cape Girardeau | 46% | $1,380 | $196,300 | 40,344 | $876 |
What fills Cape Girardeau rentals
Self-employed workers, incorporated or not, make up 7.1% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. Three more data points: government workers are about 15% of employment, 35% of adults hold a bachelor's degree or higher and 6% of commuters travel 45 minutes or more.
Employers named in Wikipedia's Cape Girardeau entry include St. Francis Medical Center, Mercy Hospital Southeast, Procter & Gamble, Southeast Missouri State University and Cape Girardeau Public Schools, which is where many tenants earn the income that pays rent. Campuses such as Southeast Missouri State University pull tenants into Cape Girardeau, and landlords near them can plan around move-in seasons. On the logistics side, air service through Cape Girardeau Regional Airport and Dallas Fort Worth International Airport are noted for Cape Girardeau.
Next steps for a Cape Girardeau purchase
A good Cape Girardeau file has four pieces: rent evidence, a tax estimate, an insurance quote and cash. Preview the ratio in the calculator, then apply or talk to us.
More Missouri markets
- All Missouri DSCR loans
- DSCR loans in O'Fallon, MO
- DSCR loans in Branson, MO
- DSCR loans in Springfield, MO
- Every market we cover
References
- State rule cited for Cape Girardeau hosts: Missouri DOR, vacation home rentals
- Census ACS profile behind the Cape Girardeau figures
- FEMA hazard ratings for Cape Girardeau County
- Wikipedia article, Cape Girardeau, Missouri
- Text of RSMo § 535.300 for Cape Girardeau landlords
Census figures are 2020 to 2024 ACS five-year estimates for Cape Girardeau and carry margins of error. RedFlagLease (CC BY 4.0) supplies the Missouri landlord-tenant notes, and the statutes are linked. Last reviewed October 2026; the city and county have the final word on Cape Girardeau rules.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent do DSCR lenders use for a Cape Girardeau rental?
On most files the lender uses the lower of the signed lease rent and the appraiser's market rent for the address in Cape Girardeau. For orientation, the Census median gross rent here is $876 a month.
Do taxes and insurance count in the Cape Girardeau DSCR ratio?
They count in full. A 1.25 ratio on $876 of rent permits a payment near $701, and median Cape Girardeau taxes take about $115 of it each month.
What do Cape Girardeau owners pay in real estate taxes?
Typical owners pay $1,380, or 0.70% of home value, with Missouri overall at 0.85%. Do not assume the seller's bill carries over to you.
What about VRBO or Airbnb income on a Cape Girardeau purchase?
Possible where lender guidelines allow it, subject to Cape Girardeau and Cape Girardeau County rules and to the building's association. Lenders usually average a year of bookings and discount the result.
What does Missouri law say about deposits at a Cape Girardeau rental?
Return is due within 30 days after the tenant leaves. The governing section is RSMo § 535.300.
How exposed is Cape Girardeau to natural hazards?
Overall risk is rated relatively moderate for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Do I need an LLC to buy a rental in Cape Girardeau?
It is optional. Lenders will close in a properly formed LLC and generally want the members to guarantee. Ask your accountant how a MO entity would be taxed.