Mississippi small multifamily is affordable, with older buildings in Jackson and student buildings in Oxford, Starkville and Hattiesburg. There is no transfer tax, but rental property is assessed at a higher ratio and coastal insurance can be expensive.
In short: Yes. LendingStreet finances 5 to 8 unit rental buildings in Mississippi with DSCR loans that qualify on the building's rent, starting at $150,000 with no stated maximum and LLC borrowers standard. Purchases can go up to 80% LTV and cash-out up to 75%, though maximum leverage on 5-8 units varies by program. Mississippi has no real estate transfer tax, but rental property is assessed at a higher ratio than a homestead and coastal wind insurance can be expensive.
Jackson has older small buildings in Belhaven, Fondren and around the medical district. Oxford near Ole Miss, Starkville near Mississippi State and Hattiesburg near Southern Miss have small buildings and fourplex clusters serving students, often with academic-year leases.
Gulfport, Biloxi and Ocean Springs on the coast have small buildings with hurricane exposure, and Southaven and Olive Branch near Memphis have newer small buildings. Tupelo and Meridian have smaller pockets at low prices.
LendingStreet treats 1 to 8 units as residential, so a five-, six-, seven- or eight-unit building in Mississippi is underwritten as a rental property rather than a commercial loan. The loan qualifies on the building's rent: total monthly rent divided by the full monthly payment, including principal, interest, taxes, insurance and any association dues.
Standard programs look for 1.0x or better, and sub-1.0 programs exist for buildings that come up a little short. Maximum leverage on 5-8 unit properties is often lower than on a single-family rental and varies by program and loan size.
A 5 to 8 unit building is usually appraised with more weight on the income approach than a house would be. The appraiser compares its rents with similar small buildings nearby and reconciles that with sales comparables. Small multifamily sales are limited in many Mississippi markets, so appraisers may need broader searches.
Underwriting works from the rent roll and the leases. Expect to provide a current rent roll showing each unit, its rent and lease dates, plus copies of the leases. Vacant units are usually counted at the appraiser's market rent, and some programs use the lower of actual and market rent.
Mississippi does not charge a real estate transfer tax, so closing costs are mostly title, recording and lender fees.
Mississippi assesses rental property at a higher ratio than a homestead, so the tax bill on a building you buy can be noticeably higher than a seller's if any part of it was their home. Budget from the rental classification and confirm with the county tax assessor.
Coastal Mississippi has hurricane exposure, and wind coverage near the Gulf can be expensive or require a separate wind policy. Flood coverage is often required in coastal and river flood zones.
Inland, tornado and hail claims affect roofs across the state. Carriers ask about roof age and building condition, and a whole-building quote is the number that goes into the DSCR payment.
This example is illustrative and not a quote. An investor buys a Hattiesburg six-unit building for $520,000. Each of the 6 units rents for $875 a month, for $5,250 in total. Property taxes are budgeted at $6,000 a year and the whole-building insurance quote is $8,500 a year.
At 75% LTV the loan is $390,000, leaving $130,000 down before closing costs. On 30-year amortization, principal and interest is about $2,727 a month. Adding $1,208 for taxes and insurance brings the payment to about $3,935, so the DSCR is about 1.33x, above the 1.0x standard minimum. If the insurance quote came in $250 a month higher, the ratio would fall to about 1.25x, which is why a firm quote matters before you set your offer.
| Item | Amount |
|---|---|
| Purchase price | $520,000 |
| Units and gross monthly rent | 6 units, $5,250 |
| Loan at 75% LTV | $390,000 |
| Principal and interest (30-year) | About $2,727 |
| Taxes and insurance per month | About $1,208 |
| Total monthly payment | About $3,935 |
| DSCR | About 1.33x |
Mississippi's Residential Landlord and Tenant Act governs deposits, notices and repairs. There is no rent control in the state.
Student buildings in Oxford, Starkville and Hattiesburg run on academic-year leases, and football weekends can create short-term demand in Oxford and Starkville. Check local rules before relying on short-term income.
Having these together before you apply keeps the appraisal and underwriting on schedule.
These loans fit investors in Mississippi who want to qualify on the building's income instead of personal tax returns, hold title in an LLC and finance on a 30-year term. Our investor loans are business-purpose loans on non-owner-occupied property, so a building where you plan to live in one of the units is not eligible.
If the building needs heavy renovation or has several vacant units, a short-term bridge loan and a later refinance into a DSCR loan can be the better path. Buildings with nine or more units are commercial; see our multifamily loans page for those. Call (877) 298-1001 or use the form below to get a quote.
Yes. LendingStreet finances 5 to 8 unit investment buildings in Mississippi with DSCR loans from $150,000, qualified on the building's rent with LLC borrowers standard.
LendingStreet treats 1 to 8 units as residential, so a 5 to 8 unit building is underwritten as a rental property on its rent. Nine or more units is commercial lending.
No. Mississippi does not charge a real estate transfer tax.
It can be. Wind coverage near the coast is often expensive and goes into the DSCR payment.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the building has to be fully used as a rental.
Vacant units are usually counted at the appraiser's market rent, and some programs use the lower of actual and market rent. Several vacancies can reduce the loan amount, and a bridge loan may be the better first step.
Yes, up to 75% LTV on standard programs, often lower on 5-8 units. The rent still has to cover the new payment, and seasoning rules vary by program.
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