Lubbock, 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, Lubbock, TX has a median cap rate of 8.2%, making it one of the top cash-flowing rental markets in the United States.
Lubbock is one of the strongest cash flow markets in the data. At $153,772 median home price, Lubbock is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,550/month, the 8.2% cap rate tells the story. Expect around +$235/month cash flow after mortgage, taxes, insurance, and reserves.
The market passes the 1% rule (1.01%), which is increasingly rare and signals strong rent-to-price fundamentals. DSCR of 1.29 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. Lubbock 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
8.2%
Above average
Monthly Cash Flow
+$235
After all expenses
Price-to-Rent
8.3
Investor-friendly
DSCR
1.29
Passes lender test
Key Metrics
- Median Home Price
- $153,772
- Average Rent (3BR)
- $1,550/mo
- Price-to-Rent Ratio
- 8.3(good)
- 1% Rule
- 1.01%(passes)
- Cash-on-Cash Return
- 7.9%
- 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
27.6%
Affordable
Section 8 Max Rent
$1,550/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
-264 households
SHRINKING
Total Inflow
1,691
households moved in
Avg Income (New Residents)
$60,109
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 Lubbock for Investors
All Zip Codes in Lubbock
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 79415 | 12.3% | +$503 | $101,805 | $1,450/mo | 1.93 |
| 79411 | 12.3% | +$499 | $101,111 | $1,440/mo | 1.93 |
| 79403 | 11.5% | +$439 | $102,730 | $1,380/mo | 1.80 |
| 79404 | 10.9% | +$380 | $100,530 | $1,290/mo | 1.71 |
| 79412 | 9.4% | +$309 | $120,884 | $1,370/mo | 1.48 |
| 79401 | 8.7% | +$287 | $152,100 | $1,600/mo | 1.35 |
| 79414 | 8.2% | +$235 | $153,772 | $1,550/mo | 1.29 |
| 79410 | 8.2% | +$282 | $185,700 | $1,870/mo | 1.29 |
| 79364 | 7.6% | +$148 | $142,317 | $1,350/mo | 1.20 |
| 79413 | 7.6% | +$195 | $193,698 | $1,830/mo | 1.19 |
| 79416 | 6.8% | +$74 | $204,370 | $1,770/mo | 1.07 |
| 79423 | 5.3% | -$217 | $234,182 | $1,660/mo | 0.83 |
| 79423 | 5.3% | -$217 | $234,182 | $1,660/mo | 0.83 |
| 79407 | 4.8% | -$302 | $226,154 | $1,490/mo | 0.75 |
| 79424 | 3.4% | -$752 | $300,136 | $1,550/mo | 0.53 |