Investment property calculator — Texas
Texas remains one of the busiest states for buy-and-hold and value-add strategies. Default rent inputs reflect Texas-typical rents from HUD Fair Market data—always verify taxes, insurance, and rents for your specific submarket. Same math as the national Investment property calculator; numbers are educational—not lender instructions.
Frequently asked questions
- How do you calculate rental property cash flow?
- Cash flow is monthly rent minus monthly expenses and debt service, adjusted for vacancy assumptions.
- What is a good DSCR for rental property?
- A DSCR above 1.0 generally means NOI covers debt service. Many investors target 1.20 or higher for safety.
- Can I save calculator results?
- This calculator does not store your session. A free account lets you save deals in the deal analyzer and track properties in your portfolio—you enter assumptions there.
- Do Texas property taxes affect cash flow in this calculator?
- Yes—and they matter. Texas has no state income tax but property taxes are among the highest in the country. Default inputs start with HUD-based rent estimates; enter your expected annual property tax and insurance load in the expenses field to model real cash flow.
- What is a good cap rate in Texas?
- Residential investment cap rates in Texas vary by market. DFW and Houston investors typically see 5.5–7% on SFR and small multifamily as of 2024–2025, while Austin and premium suburban markets compress closer to 4.5–5.5%. Texas's high effective property tax (~1.6–2% of value depending on county) meaningfully reduces NOI—enter your actual tax bill rather than using a national default to get an accurate cap rate.
- How do I estimate cash-on-cash return in Texas?
- Cash-on-cash return in Texas depends heavily on your down payment, financing rate, and how accurately you model property taxes and insurance. With a 20% down payment and 7–8% mortgage rate, many Texas SFR deals run 4–8% CoC. High property taxes reduce NOI, which compresses CoC relative to lower-tax states—use local tax estimates, not a national rule of thumb.
- What should I benchmark first in Texas rental underwriting?
- Start with about $1,350/month, 1.25% effective property tax, and your financing terms, then compare multiple vacancy and repair scenarios. This calculator is educational and should be validated with local rent comps and lender terms.
Real estate investing in Texas
Real estate investing in Texas
Property tax rates and insurance costs vary widely by county and carrier. Investors often underwrite with conservative rent growth and exit assumptions. Pair these estimates with local rent comps and lender guidelines before you offer.
- Typical 2BR rent
- ~$1,350/mo
- Effective property tax
- ~1.25% of home value
- State income tax
- No state income tax
Rent: HUD FMR 2025 · Property tax: Tax Foundation 2022 · Adjust all calculator inputs to match your specific deal.
Other calculators for Texas: BRRRR Calculator · STR vs LTR Calculator. All calculators · Investment property calculator