Market Analysis

Austin, Texas

Rental investment market data and analysis · Updated June 2026

Median Home Price

$510,000

Average Monthly Rent

$2,030

Estimated Cap Rate

4.8%

Rent-to-Price Ratio

0.4%

Below 1% Rule

Market Trends

Austin metro area — % change since 2018

Home Prices

+62.0%

Rent Index

+36.2%

-2%16%33%51%68%86%20182020202220242026

Average Rent by Bedroom

BedroomsAvg Rent
Apartment$1,462/mo
Multi-Family$1,893/mo
Condo$2,083/mo
Townhouse$2,219/mo
Single Family$2,473/mo

Sample Investment Analysis

Based on median price + average rent, 20% down, 6.8% rate, 30yr

Purchase Price$510,000
Down Payment (20%)$102,000
Monthly P&I$2,660
Monthly Rent$2,030
Est. NOI$14,616/yr
Est. Cash Flow-$1,442/mo
Cash on Cash-15.4%

The Austin market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.

What Investors Should Know About Austin

  • 1Compressed cap rates below 5% — focus on appreciation or value-add deals
  • 21% Rule fails at median prices — need rent of $5,100/mo to pass
  • 3Above-average rents support strong gross income per unit
  • 4Premium market — higher capital requirements but potential for appreciation

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