Market Analysis
Austin Rental Market
Rental investment market data and analysis · Updated October 2026
Median Home Price
$474,950
Average Monthly Rent
$1,990
Estimated Cap Rate
5.0%
Rent-to-Price Ratio
0.4%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · October 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 78701 | $650,000 | $2,988 | 0.46% |
| 78753 | $349,999 | $1,395 | 0.40% |
| 78745 | $449,900 | $1,775 | 0.39% |
| 78723 | $500,000 | $1,800 | 0.36% |
Rent ÷ price over time
PacRent rent-to-price index · Austin
Context · FRED home price index
Market Trends
Austin metro area — % change since 2018
Home Prices
+63.1%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Manufactured | $750/mo |
| Apartment | $1,434/mo |
| Multi-Family | $1,810/mo |
| Townhouse | $2,000/mo |
| Condo | $2,299/mo |
| Single Family | $2,636/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$474,950
Down Payment (20%)$94,990
Monthly P&I$2,477
Monthly Rent$1,990
Est. NOI$14,328/yr
Est. Cash Flow-$1,283/mo
Cash on Cash-14.7%
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
- 1Moderate cap rates suggest balanced cash flow and appreciation
- 21% Rule fails at median prices — need rent of $4,750/mo to pass
- 3Below-average rents keep entry costs low for new investors
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