What is the cap rate in Wichita Falls, TX?

The median cap rate in Wichita Falls, TX is 6.6%. This is based on HUD Fair Market Rents and current home values.

Is Wichita Falls a good place to buy rental property?

Wichita Falls has a cap rate of 6.6% and estimated cash flow of $40/month. This suggests solid returns for rental investors. Median home price is $193,008 with average 3BR rent of $1,450/month.

What is the average rent in Wichita Falls, TX?

The HUD Fair Market Rent for a 3-bedroom in Wichita Falls, TX is $1,450/month. This represents the estimated rent for standard-quality housing in the area.

Wichita Falls, TX — Rental Investment Analysis

🟢GOOD— solid returns

Data: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.

Investment Summary

As of 2026, Wichita Falls, TX offers a 6.6% cap rate with median home prices of $193,008 and 3-bedroom rents of $1,450/month.

Wichita Falls offers solid returns for rental investors. At $193,008 median home price, Wichita Falls is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,450/month, the 6.6% cap rate tells the story. Cash flow is modest at +$40/month — positive but tight. Rate increases or vacancies could flip it negative.

The 1% rule comes in at 0.84% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.04 is tight — you'll pass most lender minimums but with little margin for error.

Bottom line: Wichita Falls 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

6.6%

Above average

Monthly Cash Flow

+$40

After all expenses

Price-to-Rent

9.9

Investor-friendly

DSCR

1.04

Tight

Key Metrics

Median Home Price: $193,008
Average Rent (3BR): $1,450/mo
Price-to-Rent Ratio: 9.9(good)
1% Rule: 0.84%(fails — need 1%+)
Cash-on-Cash Return: 1.0%
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

Assumptions Used

20% down, 6.52% rate, 30yr, 8% vacancy, 10% maintenance

Customize these numbers →

Property Tax Rate

1.68%

of assessed value (TX avg)

Median Income

$67,321

household (TX avg)

Rent-to-Income

25.8%

Affordable

Section 8 Max Rent

$1,450/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)

Best Zip Codes in Wichita Falls for Investors

76301

Cap Rate: 13.0%Cash Flow: +$459/mo$82,831

76309

Cap Rate: 9.1%Cash Flow: +$284/mo$125,716

76306

Cap Rate: 8.3%Cash Flow: +$220/mo$140,111

All Zip Codes in Wichita Falls

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
76301	13.0%	+$459	$82,831	$1,240/mo	2.04
76309	9.1%	+$284	$125,716	$1,380/mo	1.43
76306	8.3%	+$220	$140,111	$1,420/mo	1.30
76367	7.2%	+$131	$198,435	$1,790/mo	1.12
76302	6.1%	-$51	$187,581	$1,480/mo	0.95
76308	4.9%	-$280	$221,624	$1,480/mo	0.76
76310	4.2%	-$455	$252,540	$1,520/mo	0.66
76305	3.3%	-$646	$246,682	$1,240/mo	0.51