Learn more about the housing market in Mississippi

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.

Key Takeaways

1. Mississippi remains one of the most affordable housing markets in the U.S. in 2026.
2. Home price growth is steady but below the national average.
3. Rental demand is stable, with moderate year-over-year rent increases.
4. A housing market crash is unlikely due to limited speculation and stable demand.

Mississippi Housing Market Overview 

Mississippi remains one of the most affordable states for housing in 2026, with average home values well below national levels. According to Zillow’s Home Values Index, the typical Mississippi home value is around $186,295, showing very little change year-over-year, which reflects steady but slow price growth compared with many other states.

Housing inventory is modest but sufficient relative to demand, with 8,688 homes for sale reported in early 2026, up slightly from the previous year. This relative affordability has made Mississippi attractive to buyers and investors alike, including those interested in affordable homeownership, value-add renovation projects, and short-term rentals near the Gulf Coast.

Income levels in Mississippi remain below the national average, with the state among the lowest median household incomes at about $44,966, which helps explain continued demand for lower-priced homes. Meanwhile, the cost of living in Mississippi is significantly lower than the U.S. average, especially for housing costs.

Despite affordability for buyers, many households in Mississippi still face cost burdens related to housing; nearly 28% of Mississippi households spent at least 30% of their income on housing costs in 2024, indicating ongoing affordability pressures for renters and homeowners alike.

In this article, we’ll cover the Mississippi housing market, including key metrics, concepts, and forecasts you need to know to understand real estate in the Magnolia State. 

Mississippi Housing Market Trends 

To understand the Mississippi real estate market, it’s important to keep up with trends. Let’s look at some key ones in Mississippi: 

Note: These statistics are based on Redfin’s monthly housing data from January 2026. 

Median Home Price 

The median sale price for homes in Mississippi was $250,300 in January 2026, up 0.4% from last year’s median home value according to monthly housing data from Redfin. Mississippi has some of the most affordable home prices in the country. However, it’s worth noting that some cities in Mississippi have slightly higher average home prices. For example, the median home price in Madison, Mississippi is $377,000. 

Number of Homes Sold in January 2026

1,089 homes sold in Mississippi in January of this year, down 3.6% from January of last year. This metric gives us a good picture of the current sales volume in Mississippi. However, keep in mind that this number might be lower compared to other months since nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer's market as sales are slower and sellers have less leverage. 

The current median days on market (DOM) in Mississippi is 64 days. This means on average, homes in Mississippi stay on the market for around two months before being put under contract, indicating a less competitive buyer’s market. 

New Supply Statistics 

As of early 2026, Mississippi’s housing market is experiencing a shift toward more inventory, with roughly 2,556 new listings recorded in January, making up about 23.7% of total active listings. While national supply has increased for many consecutive months, Mississippi has seen a slow sales pace.

Property Tax Rate 

The average property tax rate in Mississippi is 0.67%, according to Rocket Mortgage. This places Mississippi’s average property tax rate as the 16th lowest in the U.S. However, keep in mind that property taxes vary widely depending on the specific county of Mississippi and the market value of the home. 

Foreclosure Rate in Q1 of 2026

In the first quarter of 2024, 1 in every 10,396 homes experienced a foreclosure filing (according to recent data from ATTOM). Based on this data, Mississippi's foreclosure rate is exceptionally lower than most other U.S. states, ranking 46th nationwide.

Hottest Local Markets in Mississippi 

Although Mississippi properties may not be as in-demand as those in neighboring southern states, the state nonetheless features a number of local housing markets with great prospects for homeowners and investors. Below we cover a few of these markets. 

1. Madison

The hometown of the founding father and fourth U.S. President with the same name, Madison is an up-and-coming market in central Mississippi, just north of Jackson. The median home price in Madison is $377,000, almost twice as much as the state median, and homes sell here in just 36 days on average according to Redfin. The market is competitive and seeing significant appreciation. 

2. Gulfport/Biloxi

The Gulfport/Biloxi metro area is located at the southern tip of Mississippi, on the Gulf Coast. Gulfport is the second most populous city in Mississippi, behind only Jackson. The median home price in the Gulfport area was $198,000 in January, making the city both highly affordable and an ideal location for short-term rental properties or vacation homes. 

3. Jackson

Jackson is Mississippi’s capital and most populated city. The median sales price for a home in Jackson is $97,000, making Jackson another highly affordable city for home buyers. While homes in Jackson sell in an average of 58 days, hot homes can sell in as few as 17 days. 

Economic Factors Impacting the Mississippi Housing Market 

A holistic view of the Mississippi housing market requires a basic understanding of the main economic drivers affecting the market. Let’s look at a few critical ones below: 

Mortgage Rates 

High mortgage rates continue to influence housing decisions for would-be homeowners in Mississippi in 2026. As of early February 2026, the average 30-year fixed mortgage rate in Mississippi is about 5.77%, slightly below the national average but still elevated compared with historic lows.

These elevated rates discourage some buyers and contribute to fewer existing homeowners listing their properties, since many current borrowers hold loans with lower rates from previous years. Even modest fluctuations near the mid-6% range can materially affect monthly payments and overall affordability for prospective Mississippi buyers.

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Mississippi. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income. 

Population Changes and Demographics 

Population trends continue to influence Mississippi’s housing market in 2026. According to the U.S. Census Bureau’s Vintage 2025 estimates, Mississippi’s population was approximately 2,954,160 as of July 1, 2025, only slightly below its 2020 count of about 2,961,279. Overall, the state’s population growth has lagged behind the national average, with a roughly -0.2% change from 2020 to 2025.

Mississippi doesn’t experience the same demand pressure on housing that faster-growing states see, which helps keep home prices and rents more stable and affordable compared with national trends. However, slower population gains can also mean weaker job growth and reduced long-term demand for housing, which may limit strong price appreciation and rental demand.

Mississippi Housing Market Forecast 

Mississippi’s housing market is expected to see modest price growth rather than rapid appreciation in 2026. According to Zillow’s Home Value Index, the typical Mississippi home value is about $186,295, with annual growth remaining relatively flat to low single digits compared to stronger national gains.

Inventory remains limited but not severely constrained. Redfin’s January 2026 data show steady listing activity without major oversupply, helping keep prices stable. Overall, Mississippi is forecast to experience slow, steady appreciation below the national average, supported by affordability and consistent regional demand, especially along the Gulf Coast.

Likelihood of Mississippi Housing Market Crash  

A housing market crash in Mississippi appears unlikely in 2026. Unlike overheated markets, Mississippi’s home values remain well below the national median, reducing the risk of a sharp correction. Mortgage rates averaging around 6% nationally in early 2026 have slowed activity but have not created widespread distress.

Forecast for The U.S. Housing Market 

Now that we’ve looked at Iowa’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

Mississippi Rental Market Forecast

In 2026, Mississippi’s rental market is showing steady demand with moderate rent growth and balanced vacancy conditions, reflecting broader national trends of stabilization rather than rapid inflation. The average rent across the state is roughly $1,300 per month in 2026, with some data showing typical rents around $1,324 per month, up about 4–5% year-over-year.

Statewide vacancy rates remain relatively healthy, with Mississippi’s rental vacancy reported near 7.6%, which suggests more availability for renters compared to many tighter markets. This level of vacancies generally indicates a balanced environment where renters have more choices and landlords are less able to push higher rents quickly.

In local metros like Jackson, rents have been rising modestly — for example, average rent in Jackson moved from approximately $1,050 to around $1,100 recently, representing a near 5% increase.

Looking ahead, Mississippi’s rental market in 2026 is expected to continue moderate rent growth as demand holds steady, supported by affordability relative to national averages and steady demographic trends. However, significant jumps in rents are unlikely without stronger job growth or migration inflows, as overall population growth in Mississippi remains slow compared with faster-growing states. This short summary leads directly into Mississippi’s current rental market, with key trends from Zillow. 

Mississippi Rental Market Key Trends 

• Median rent: $1,585

• Month-over-month rent change: +$35 

• Year-over-year rent change: +$85

• Available rentals: 2,770 

Conclusion 

Mississippi’s housing market in 2026 remains one of the most affordable in the country, characterized by slow but steady home price growth, moderate rental demand, and limited population expansion. Unlike high-growth states experiencing sharp swings, Mississippi’s market is driven more by income levels and regional economic stability than speculative demand. While affordability pressures exist, especially for lower-income households, the overall outlook points toward stability rather than volatility. Buyers, renters, and investors should continue monitoring mortgage rates, employment trends, and inventory levels to understand how local conditions may shift in the months ahead.

FAQs

Is Mississippi a buyer’s market in 2026?

In many areas, yes. Moderate competition and affordable pricing give buyers more leverage than in high-growth states.

Are home prices rising in Mississippi?

Yes, but growth remains modest compared to national averages.

Is Mississippi affordable compared to other states?

Yes, median home prices and rents remain well below the U.S. median.

Will mortgage rates affect Mississippi’s market?

Absolutely — rates near 6% continue to influence affordability and listing activity.

Is Mississippi a good state for rental property investment?

It can be, especially in metro and Gulf Coast areas where lower purchase prices support potential cash-flow strategies.