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Rental Investing in Houston, TX

2026 Market Data & Investment Analysis

Gross Yield

6.3%

Annual rent / price

Median Home Price

$285,000

As of 2026-Q1

Median Monthly Rent

$1,500

Per month

Population

2,288,250

+1.2% / yr (5y avg)

Calculate Your Return in Houston

Pre-filled with Houston's median values. Adjust to match your specific property.

Property Details

$

Total acquisition cost before taxes

$
$

HOA, insurance, property management

%

% of time the property is empty

%

% of purchase price (e.g. 2% = 2)

% of price

Rule of thumb: 1% of purchase price/yr

Results

Gross Rental Yield

6.32%

Net Rental Yield

4.16%

Cap Rate

4.16%

Monthly Cash Flow

$987.50

Annual Cash Flow

$11,850.00

> 6% — Excellent4–6% — Good< 4% — Low

Market Overview

Median Home Price — 5-Year Trend

2021
$240,000
2022
$315,000
2023
$295,000
2024
$290,000
2025
$285,000

Median Monthly Rent — 5-Year Trend

2021
$1,280
2022
$1,470
2023
$1,505
2024
$1,503
2025
$1,500

Houston provides solid rental yields of 6.3%, in line with healthy investment market benchmarks.

Strong population growth of 1.2% per year suggests increasing rental demand and a tightening supply-demand balance over time.

The vacancy rate of 7.5% is healthy, indicating strong rental demand and limited downtime between tenants.

Investment Profile

Growth & Income Market

Houston offers the best of both worlds — above-average rental yields combined with strong population growth. These market conditions support both current cash flow and long-term appreciation potential.

✓ Strengths

  • •Gross rental yield of 6.3% is above the national average
  • •Population growth of 1.2% per year drives rental demand
  • •Dual potential for rental income and price appreciation

! Risks

  • •Investor competition can compress yields as prices rise
  • •Rapid growth may put upward pressure on purchase prices

Key Metrics

Gross Yield6.3%
Median Home Price$285,000
Median Monthly Rent$1,500
Population Growth+1.2% / yr
Vacancy Rate7.5%

How Houston Compares

Houston vs Dallas: 0.5 percentage point difference in gross yield.

CityMedian PriceMedian RentGross YieldPop. Growth
Dallas, TX$350,000$1,7005.8%+1.6%
San Antonio, TX$260,000$1,4006.5%+1.5%
Austin, TX$450,000$1,8004.8%+1.8%
El Paso, TX$200,000$1,2007.2%+0.4%
Oklahoma City, OK$195,000$1,1507.1%+0.8%

Frequently Asked Questions

Is rental investing profitable in Houston?▾
Yes, Houston offers a gross rental yield of 6.3%, which is above the national average of around 5–6%. With a median home price of $285,000 and median monthly rent of $1,500, the numbers support profitable rental investing — though your specific results depend on financing terms, expenses, and property management.
What is the average rental yield in Houston?▾
The average gross rental yield in Houston is approximately 6.3%, based on a median home price of $285,000 and median monthly rent of $1,500 (as of 2026-Q1). Net yield, which accounts for vacancy, expenses, and maintenance, is typically 2–3 percentage points lower.
How does Houston compare to Dallas for investors?▾
Houston has a gross yield of 6.3% compared to 5.8% in Dallas, a difference of 0.5 percentage points. Houston offers higher current income potential, making it more attractive for cash flow-focused investors.

Ready to Analyse a Specific Property in Houston?

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Compare with nearby cities:

Dallas, TXSan Antonio, TXAustin, TXEl Paso, TX

Data source: Zillow Research / U.S. Census Bureau. Last updated: 2026-Q1. This information is for educational purposes only and does not constitute investment advice.