Market Analysis
Austin, Texas
Rental investment market data and analysis · Updated July 2026
Median Home Price
$492,500
Average Monthly Rent
$2,025
Estimated Cap Rate
4.9%
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%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,486/mo |
| Multi-Family | $1,924/mo |
| Townhouse | $2,149/mo |
| Condo | $2,158/mo |
| Single Family | $2,511/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$492,500
Down Payment (20%)$98,500
Monthly P&I$2,569
Monthly Rent$2,025
Est. NOI$14,580/yr
Est. Cash Flow-$1,354/mo
Cash on Cash-15.0%
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 $4,925/mo to pass
- 3Above-average rents support strong gross income per unit
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