Louisiana Rental Portfolio Guide

What you need to know before building or growing a rental portfolio in Louisiana — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.

Property tax rate
0.56%
Rank 5 / 51 (low → high)
Top state income tax
4.25%
top marginal
Security deposit cap
No cap
Source-of-income law
Local protection
New Orleans City Code

Tax burden on Louisiana rentals

Property tax

0.56%

effective rate on median home value

At 0.56% effective, this is one of the lowest property tax burdens in the country (rank 5 of 51). Portfolio holding costs stay low even in appreciating markets — a big structural advantage for long-term holds.

State income tax

4.25%

top marginal rate

A top marginal rate of 4.25% is moderate. Portfolio income above the federal deduction stack still faces this rate on top of federal, so tax-optimized holding structures (installment sales, 1031s, cost-segregation) matter more here than in no-tax states.

Security deposit rule

No statutory cap on security deposits. Landlords set the deposit at whatever the market accepts — typically one to two months' rent, sometimes more for higher-risk applicants or pets. Local ordinances may still apply.

Deposit rules change; verify current statute before drafting a lease.

Best cash-flow markets in Louisiana

Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using Louisiana’s 0.56% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.

MarketMedian priceMedian rentAnnual property taxCF / month
Opelousas, LA$133,550$1,013$748$-3
Shreveport, LA$186,193$1,348$1,043$-52
Monroe, LA$168,606$1,206$944$-58
Fort Polk South, LA$162,266$1,153$909$-62
Houma, LA$186,622$1,305$1,045$-86
Alexandria, LA$171,604$1,176$961$-97

State median across the metros: $194,974 home, $1,305 rent, $-127/mo modeled cash flow.

Track your Louisiana rental portfolio

The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each Louisiana property carries the state-specific tax burden shown above through to the cash flow calculation.

Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.