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Texas Cap Rate Calculator

Calculate cap rates using Texas market data. Property tax, insurance, vacancy rates, and other defaults are pre-filled with current Texas averages. Net Operating Income ÷ Property Price

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Property Details

Operating Expenses(Texas defaults)

Total Annual Expenses$14,658

Texas Market Context

Avg Cap Rate

5.8%

Median Price

$338K

Property Tax

1.25%

Vacancy Rate

9.2%

Local Factors

  • -No state income tax but very high property taxes and insurance eat into cash flow
  • -Massive new construction in Dallas, Houston, Austin, and San Antonio is increasing vacancy
  • -Population growth remains strong but rent growth has stalled in oversupplied metros

Sources

World Population Review – Median Home PriceFL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance RatesiPropertyManagement – Vacancy Rates

Cap Rate

0.8%

Low
Net Operating Income$2,598
Gross Income$17,256
Total Expenses$14,658
Texas Avg Cap Rate5.8%
CAP RATE0.8%
NOI$2,598
Property Tax$4,225
Insurance$4,085
Maintenance$3,380
Management$1,380
Vacancy$1,588

What does this mean?

A cap rate below 4% is typical for premium locations with lower risk but limited cash flow. Common in Class A properties in major metros.

Keep running the numbers

One calculator rarely tells the whole story.

Cap rate tells you the return without financing. Now see what happens when you add a mortgage with Texas rates.

Cash on Cash Return

Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.

Calculate

NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

Calculate

Gross Rent Multiplier

Quickly screen and compare rental properties by how many years of gross income cover the purchase price.

Calculate

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