Houston, TX — Rental Investment Analysis

🟡MODERATEaverage returns

Cap Rate

5.5%

Below average

Monthly Cash Flow

+$90

After all expenses

Price-to-Rent

13.3

Investor-friendly

DSCR

1.20

Tight

📊 Key Metrics

Median Home Price
$280,000
Average Rent (3BR)
$1,750/mo
Price-to-Rent Ratio
13.3(good)
1% Rule
0.63%(fails — need 1%+)
Cash-on-Cash Return
4.8%
Vacancy Rate
8.2%

📈 Market Strength

Job Growth
+2.5% YoY
Population Growth
+1.4% YoY
Home Price Appreciation (5yr)
+28%

Assumptions Used

20% down, 7.000000000000001% rate, 30yr, 8% vacancy, 10% maintenance

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🏘️ Best Zip Codes in Houston for Investors

77003
Cap Rate: 7.2%Cash Flow: +$290/mo$185,000
77004
Cap Rate: 6.5%Cash Flow: +$220/mo$220,000
77002
Cap Rate: 5.8%Cash Flow: +$140/mo$275,000