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Rental Property Calculator

Reviewed by ArvCalc Editorial TeamLast updated: May 2026

This calculator and guide are designed for educational underwriting purposes. The formulas are based on standard real estate investment analysis concepts such as NOI, debt service, cash flow, IRR, and exit value. Results are estimates based on user-entered assumptions and should not be treated as financial, tax, legal, lending, or investment advice.

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Total Return
—fill in fields below

What do you want to calculate?

Enter all property inputs to project multi-year Total Return, IRR, and year-by-year cash flow. The standard analysis mode.

Property

Income (Year 1)

2026 typical: $1,800–$3,500/mo depending on market and unit type

Operating Expenses (Year 1, annual)

Expense entry mode

Rule of thumb: 35–50% of EGI.

Growth Assumptions

2026 conservative assumptions: rent 2–3%, expenses 2.5–3.5%. Rent growth above 4% is optimistic.

Financing

Enter 0 for owner-carry or interest-free seller financing.

Additional Cash Invested

Hold Period & Exit

Exit Method

Sale Price = Year N NOI ÷ Exit Cap Rate. Reflects market pricing at exit.

Total Return (10-year hold)

Before-tax analysis. Includes cash flow + equity + exit.

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How to Use the Texas Rental Property Calculator

This calculator is pre-loaded with Texas-specific defaults for property tax (1.80%), insurance ($2,800/yr), vacancy (6.5%), and management fees (9%). These are statewide averages — your actual numbers depend on the county, city, and property type.

  1. Enter the purchase price and financing terms. Investment loans in Texas typically require 20-25% down at 6.5-7.5%.
  2. Enter monthly rent from actual leases or comparable rents (Zillow, Apartments.com, local PM).
  3. Review pre-filled expenses — property tax, insurance, vacancy are set to Texas averages. Replace with property-specific data.
  4. Check results — cash flow, NOI, cap rate, DSCR update instantly.
  5. Run a conservative scenario — increase vacancy by 2%, reduce rent by 5%.

Every pre-filled value can be changed. Defaults are starting points, not recommendations.

Texas Expenses That Affect Rental Cash Flow

Property Tax (1.2%–2.8%)

Texas has no state income tax but property taxes are among the highest in the US. Harris County (Houston) runs 2.0-2.3%, Travis County (Austin) 1.8-2.0%, rural counties below 1.5%. Investment properties do not qualify for the homestead exemption ($100K reduction). Check your county appraisal district for the exact rate.

Insurance ($1,800–$4,500/yr)

Texas insurance is elevated due to hail, wind, tornado, and flood risk. Coastal properties (Houston, Galveston) may need separate windstorm coverage through TWIA, adding $700-$2,500/yr. FEMA flood zones require additional flood insurance. Get 2-3 quotes for your specific property.

No State Income Tax

Rental income and capital gains are taxed only at federal rates. Compared to California (13.3%) or New York (8.8%), Texas investors save 5-10% on net rental income.

Vacancy (4%–10%)

Austin and DFW run 4-6%. Houston 6-8%. Rural Texas 8-12%. Use Census ACS data or ask a local property manager.

Example: San Antonio Duplex ($285K)

Purchase Price$285,000
Down Payment (20%)$57,000
Rate / Term7.0% / 30yr
Rent (2 × $1,050)$2,100/mo
Vacancy (6.5%)−$1,638/yr
Property Tax (2.0%)−$5,700/yr
Insurance−$2,500/yr
PM (9%) + Maintenance + CapEx−$9,259/yr
NOI$5,103/yr
Mortgage (P&I)−$18,192/yr
Cash Flow−$13,089/yr (−$1,091/mo)

Result: Cash-flow negative. The 2.0% property tax ($5,700/yr) consumes most of the NOI. To break even: buy at ~$210K or raise rents to ~$2,500/mo. This is why Texas-specific tax rates — not national averages — are critical.

Hypothetical example for educational purposes only.

Sources and Methodology

  • Property tax: Texas Comptroller, county appraisal districts
  • Insurance: NAIC
  • Vacancy: US Census ACS 5-Year
  • Rent/values: Zillow ZORI + ZHVI
  • Market stats: Texas Real Estate Research Center

Data period: Q1 2026. Last reviewed: July 2026. Defaults are planning assumptions — replace with property-specific data.

Related Texas Calculators

← Texas Calculator Hub

All Texas investment tools

Texas Closing Costs

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Cap Rate Calculator

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DSCR Calculator

Check DSCR loan qualification

FAQ

What property tax rate should I use for a Texas rental?
Statewide average is 1.80%, but actual rates range 1.2-2.8% by county. Harris County (Houston) 2.0-2.3%, Travis (Austin) 1.8-2.0%. Investment properties do not get the homestead exemption. Check your county appraisal district.
How does no state income tax affect returns?
Rental income is taxed only at federal rates. Compared to CA (13.3%) or NY (8.8%), Texas investors save 5-10% on net income. However, Texas compensates with higher property taxes.
Why is Texas insurance expensive?
Hail, wind, tornado, hurricane, and flood risks. Average $2,800/yr, but coastal properties need TWIA windstorm coverage ($700-$2,500 extra). Flood zones require additional flood insurance.
Which Texas metro is best for rental investing?
Depends on strategy. San Antonio: lowest entry ($265K median), military tenants. DFW: tightest inventory, corporate relocations. Houston: strong cash flow, higher insurance. Austin: highest prices, strongest appreciation. Run the numbers for your specific property.
Are the default values accurate for my property?
Defaults are statewide averages from public data (Texas Comptroller, Census ACS, NAIC, Zillow). Replace with actual values from county assessor, insurance quotes, and comparable rents for accurate analysis.

Disclaimer: This calculator is for educational purposes only. Results are estimates based on assumptions and public data averages. Not financial, tax, legal, or investment advice. Actual performance depends on property-specific conditions. Consult licensed professionals before making investment decisions.