Lamesa, TX — Rental Investment Analysis
🟢STRONG— excellent cash flow marketData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Lamesa, TX has a median cap rate of 9.3%, making it one of the top cash-flowing rental markets in the United States.
Lamesa is one of the strongest cash flow markets in the data. With a median home price of $114,565, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,280/month, the 9.3% cap rate tells the story. Expect around +$278/month cash flow after mortgage, taxes, insurance, and reserves.
The market passes the 1% rule (1.12%), which is increasingly rare and signals strong rent-to-price fundamentals. DSCR of 1.46 means the property's income comfortably covers debt service — DSCR loans should be easy to qualify for here.
Bottom line: Buy here if you want reliable monthly income. Lamesa is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
9.3%
Above average
Monthly Cash Flow
+$278
After all expenses
Price-to-Rent
7.5
Investor-friendly
DSCR
1.46
Passes lender test
Key Metrics
- Median Home Price
- $114,565
- Average Rent (3BR)
- $1,280/mo
- Price-to-Rent Ratio
- 7.5(good)
- 1% Rule
- 1.12%(passes)
- Cash-on-Cash Return
- 12.6%
- 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
22.8%
Affordable
Section 8 Max Rent
$1,280/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)