Luling, 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, Luling, TX offers a 6.4% cap rate with median home prices of $232,618 and 3-bedroom rents of $1,815/month.
Luling offers solid returns for rental investors. At $232,618 median home price, Luling is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,815/month, the 6.4% cap rate tells the story. At current prices and rates, expect to lose about $4/month — negative cash flow unless you put more down or find below-market deals.
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: Luling 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
-$4
After all expenses
Price-to-Rent
10.2
Investor-friendly
DSCR
1.00
Tight
Key Metrics
- Median Home Price
- $232,618
- Average Rent (3BR)
- $1,815/mo
- Price-to-Rent Ratio
- 10.2(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
32.4%
Moderate
Section 8 Max Rent
$1,815/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)