Average capitalization rate in Texas, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in Texas

MedianMeanMode
9.7%
From 12,181,499 homes
10.1%
From 12,181,499 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in Texas

LocationMedianMeanMode
78669
4.0%
From 1 home
4.0%
From 1 home
-
Abbott
10.1%
From 250 homes
10.2%
From 250 homes
-
Abernathy
12.2%
From 858 homes
12.3%
From 858 homes
-
Abilene
15.7%
From 52,485 homes
15.8%
From 52,485 homes
-
Abram
12.9%
From 412 homes
13.4%
From 412 homes
-
Acala
8.6%
From 43 homes
8.9%
From 43 homes
-
Ackerly
10.5%
From 155 homes
13.2%
From 155 homes
-
Addison
7.8%
From 3,416 homes
7.8%
From 3,416 homes
-
Adrian
10.3%
From 174 homes
12.4%
From 174 homes
-
Agua Dulce
12.8%
From 1,518 homes
14.0%
From 1,518 homes
-

All cities in Texas