Choose Your Texas Calculator
Select a tool pre-loaded with Texas-specific tax rates, insurance averages, and market data.
Texas-Specific
Texas Rental Property Calculator
FeaturedCash flow, CoC return, cap rate, and NOI — pre-loaded with 1.8% property tax, $2,800 insurance, and metro vacancy defaults.
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Texas Closing Costs Calculator
No Transfer TaxBuyer and seller closing costs with Texas-specific line items: state-set title insurance, no transfer tax, survey fee, and escrow reserves.
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General Calculators — also useful for Texas deals
Texas Underwriting Factors
Key state-level inputs that affect every Texas investment property analysis.
Property Tax Rate
1.4% avg
Effective statewide average. Actual rates vary 1.2%–2.8% by county. No cap on assessment increases for investment property. No homestead exemption for non-owner-occupied properties.
Homeowner's Insurance
$3,300/yr avg
Among the highest in the US due to hail, wind, and flood risk. Range: $2,200–$5,000/yr. Coastal properties may need separate windstorm (TWIA) coverage. Budget flood insurance at $700–$2,500/yr in FEMA zones.
State Income Tax
None (0%)
Texas has no state income tax. Rental income and capital gains are taxed at federal rates only. This improves after-tax cash flow versus states like California or New York.
Vacancy Rate
8% avg
Statewide average. Austin and DFW run 4–6%; Houston 6–8%; rural areas 8–12%. New apartment supply in several metros is elevating vacancy. Use metro-specific data when available.
Property Management
8–10%
Long-term rental management typically 8–10% of collected rent. STR management runs 20–25% of gross revenue. Lease-up fee typically 50–100% of one month's rent.
Closing Costs & Exemptions
2–4% buyer
Buyer pays 2–4% of purchase price; seller pays 6–8% (commission + owner's title policy). No transfer tax in Texas. Homestead exemption (up to $100K) is for owner-occupied primary residences only — not available for investment property.
Texas Market Snapshot
Statewide aggregate data — not a guarantee of performance in any individual market.
Median Sale Price
$335K
-1.2% YoY
Median Rent
$1,452
-0.9% YoY
Days on Market
44
median
Inventory
3.8mo
supply
Population Growth
+1.7%
annual
Data Period
Full-year 2025 / Q2 2026
last reviewed
Source: Texas REALTORS, RentCafe, Zillow Research, FRED. Data period: Full-year 2025 / Q2 2026. Last reviewed: 2026-07. Figures represent statewide aggregates and may differ materially from local conditions.
Major Texas Markets
Metro-level data for underwriting. Each market has distinct tax rates, insurance costs, and vacancy profiles.
Austin–Round Rock
Travis, Williamson counties
Median Price
$440K
-3.5% YoY
Median Rent
$1,995
-1.8% YoY
Prop. Tax
2.07%
effective
Prices correcting from 2021-2022 peak. Record apartment deliveries pressuring rents. Strong tech employment base supports long-term demand.
Dallas–Fort Worth–Arlington
Dallas, Tarrant, Collin counties
Median Price
$410K
+2.5% YoY
Median Rent
$1,995
+3.2% YoY
Prop. Tax
2.22%
effective
Consistent corporate relocations and population growth. Tight inventory in suburban markets. Property taxes among the highest in the state.
Houston–The Woodlands–Sugar Land
Harris, Fort Bend, Montgomery counties
Median Price
$350K
+1.4% YoY
Median Rent
$1,900
+2.8% YoY
Prop. Tax
2.03%
effective
Energy sector drives economy. Higher insurance costs due to hurricane and flood risk. Strong cash flow potential in suburban areas.
San Antonio–New Braunfels
Bexar, Comal, Guadalupe counties
Median Price
$260K
-2.6% YoY
Median Rent
$1,699
+3.5% YoY
Prop. Tax
2.27%
effective
Most affordable major Texas metro. Military bases provide stable tenant pool. Growing tech and healthcare sectors.
How to Analyze a Texas Deal: 7 Steps
A repeatable underwriting framework using ArvCalc tools, with Texas-specific inputs at each step.
Verify the county property tax rate
Look up the combined rate (county + school district + MUD) on the county appraisal district website. Rates vary from 1.2% in some Hill Country counties to 2.8%+ in high-MUD suburban areas. Enter the exact rate in the Texas Rental Property Calculator.
Get an insurance quote — don't use national averages
Texas insurance varies more than any other large state. Get a real quote for the specific zip code and structure. Check whether the property is in a FEMA flood zone (Zone AE or X). Budget additional windstorm (TWIA) coverage for Gulf Coast properties. The Texas Rental Property Calculator defaults to $2,800/yr but accepts your actual quote.
Estimate gross rent from local comparables
Use Zillow, Rentometer, or local property management companies. Do not rely on statewide medians for individual deal underwriting. Apply the metro vacancy default or use actual historical data for the sub-market. The NOI Calculator can help you model different rent assumptions.
Calculate NOI and cap rate
With gross rent, vacancy, taxes, insurance, and management in hand, run the Cap Rate Calculator to get the unlevered yield. Compare against comparable sales to assess whether the asking price is supported by income. In Texas, cap rates on SFR typically run 5–7% depending on metro and condition.
Model financing with DSCR
Most Texas investment property lenders require a minimum DSCR of 1.20–1.25. Run the DSCR Calculator to check whether the deal qualifies for DSCR lending and to find the maximum supportable loan amount at your target rate and NOI.
Estimate total acquisition cost including closing costs
Texas has no transfer tax, but buyer closing costs of 2–4% are still material. Use the Texas Closing Costs Calculator to itemize lender fees, appraisal, inspection, title (lender's policy), survey, recording, and escrow reserves. Include these in your total equity required for cash-on-cash return calculation.
Run the full cash flow analysis
Combine all inputs in the Texas Rental Property Calculator to get monthly and annual cash flow, cash-on-cash return, and total ROI projection. Model multiple scenarios — conservative, base, and optimistic — before committing to an offer price.
Free Expert Analysis
Have a Texas deal you want to discuss?
Our investment analysts can review your underwriting assumptions, flag Texas-specific risks, and help you stress-test your numbers before you make an offer.
Frequently Asked Questions
Common questions about using these calculators for Texas investment properties.
Open the Texas Rental Property Calculator and update the property tax rate field with the combined rate for your specific county — available from the county appraisal district website. The calculator defaults to the 1.8% statewide average, but actual rates range from 1.2% in some rural Hill Country counties to 2.8%+ in suburban areas with Municipal Utility Districts (MUDs). Also update the insurance field with a real quote for the zip code and property type.
Sources and Methodology
Primary Sources
- Tax Foundation (taxfoundation.org)
- Texas Department of Insurance (tdi.texas.gov)
- Texas REALTORS (texasrealestate.com)
- Federal Reserve FRED (fred.stlouisfed.org)
- US Census Bureau ACS/CPS/HVS
- Zillow Research (zillow.com/research)
- RentCafe (rentcafe.com)
- Redfin (redfin.com)
Methodology Notes
- Property tax rates are effective rates (taxes paid ÷ assessed value), averaged across counties. Actual combined rates (county + ISD + MUD) should be verified at the county appraisal district.
- Insurance averages from NAIC state-level data. Individual premiums vary by construction type, age, roof condition, flood zone, and coverage limits.
- Market price and rent data from Zillow Research (ZHVI and ZORI indexes). Metro figures are for the full MSA boundary.
- Data reviewed 2026-07-14. Update frequency: quarterly.
All figures are estimates for educational purposes. Market conditions change rapidly. Verify all inputs with local professionals before making investment decisions.
Financial Disclaimer
The calculators, data, and content on this page are provided for educational and informational purposes only. They do not constitute financial, tax, legal, lending, valuation, or investment advice. Real estate investment involves substantial risk, including the risk of loss of principal. Market data is estimated from third-party sources and may not reflect current or future conditions in any specific property, sub-market, or investment scenario.
Always consult a licensed real estate professional, CPA, attorney, and lender before making investment decisions. Property tax rates, insurance costs, rent levels, and market conditions can differ significantly from the statewide averages presented here. ArvCalc is not a licensed real estate broker, investment advisor, or insurance agent.