Amarillo, TX — Rental Investment Analysis
🟢GOOD— solid returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Amarillo, TX offers a 6.4% cap rate with median home prices of $171,706 and 3-bedroom rents of $1,530/month.
Amarillo offers solid returns for rental investors. At $171,706 median home price, Amarillo is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,530/month, the 6.4% cap rate tells the story. Cash flow is modest at +$3/month — positive but tight. Rate increases or vacancies could flip it negative.
The 1% rule comes in at 0.82% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.00 is tight — you'll pass most lender minimums but with little margin for error.
Bottom line: Amarillo offers a balance of moderate cash flow and growth potential. Good for investors who want some income while building equity over time.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
6.4%
Above average
Monthly Cash Flow
+$3
After all expenses
Price-to-Rent
10.1
Investor-friendly
DSCR
1.00
Tight
Key Metrics
- Median Home Price
- $171,706
- Average Rent (3BR)
- $1,530/mo
- Price-to-Rent Ratio
- 10.1(good)
- 1% Rule
- 0.82%(fails — need 1%+)
- Cash-on-Cash Return
- 0.1%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 4.3%(0% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- +1.5% YoY
Property Tax Rate
1.68%
of assessed value (TX avg)
Median Income
$67,321
household (TX avg)
Rent-to-Income
27.3%
Affordable
Section 8 Max Rent
$1,530/mo
3BR voucher payment
TX Investor Climate
Landlord Friendly
9/10
State Income Tax
None
Property Tax
1.68% effective
Population Trend
+1.5% (3yr)
Population Movement (Tax Year 2021→2022)
Net Migration
-14 households
SHRINKING
Total Inflow
91
households moved in
Avg Income (New Residents)
$48,813
per household
Where they're coming from:
Where residents are leaving to:
Net outflow may indicate weakening demand — but can mean lower prices and higher cap rates.
Best Zip Codes in Amarillo for Investors
All Zip Codes in Amarillo
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 79107 | 10.3% | +$367 | $113,442 | $1,380/mo | 1.61 |
| 79104 | 10.0% | +$356 | $118,769 | $1,410/mo | 1.56 |
| 79101 | 9.7% | +$308 | $112,494 | $1,300/mo | 1.51 |
| 79110 | 8.7% | +$327 | $171,706 | $1,810/mo | 1.36 |
| 79103 | 8.0% | +$215 | $156,770 | $1,550/mo | 1.26 |
| 79102 | 6.9% | +$66 | $156,972 | $1,370/mo | 1.08 |
| 79106 | 6.4% | +$3 | $167,544 | $1,380/mo | 1.00 |
| 79108 | 6.2% | -$33 | $202,025 | $1,620/mo | 0.97 |
| 79118 | 4.9% | -$322 | $259,540 | $1,740/mo | 0.77 |
| 79109 | 4.7% | -$330 | $235,087 | $1,530/mo | 0.74 |
| 79121 | 3.3% | -$775 | $299,982 | $1,520/mo | 0.51 |
| 79119 | 2.8% | -$1,141 | $380,974 | $1,740/mo | 0.44 |
| 79124 | 2.6% | -$1,209 | $378,928 | $1,640/mo | 0.40 |