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MarketsTexasAbilene

Cap Rate Analysis: Abilene, TX

Investment metrics, interactive calculators, and data-driven analysis for Abilene rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Strong investment fundamentals
Based on $205,000 median price and $1,770/mo median rent
Est. Cap Rate
7.24%
1% Rule
0.86%
Fails
GRM
9.7x
Price / Income
3.2x

Market Data

Median Home Price$205,000
Median Monthly Rent$1,770
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%

Cap Rate Calculator — Abilene

Pre-filled with Abilene medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.72% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
5.77%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$11,836
net operating income
Gross Rent Multiplier
9.7x
Good (<15)
1% Rule
0.86%
✗ Fails
Monthly Cash Flow
$986
before debt service
Annual Breakdown
Gross Rental Income$21,240
Less Vacancy−$1,232
Effective Income$20,008
Less Operating Expenses−$8,172
Net Operating Income$11,836
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Cash-on-Cash Return — Abilene

Factor in financing to see your actual return on invested capital in Abilene.

$
$51,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
0.52%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$57,400
$51,250 down + $6,150 closing
Monthly Mortgage
$1,002
on $154K loan
Monthly Cash Flow
$25
after all expenses
Annual Cash Flow
$296
before taxes
Cash Flow Breakdown
Monthly Rent$1,770
Less Expenses−$743
Less Mortgage−$1,002
Monthly Cash Flow$25

Is Abilene a Good Place to Invest in Rental Property?

Abilene, TX has a population of 50,000 and has been growing at 1.8% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $205,000 paired with median rents of $1,770/mo produces an estimated cap rate of 7.24%.

Property taxes at 1.72% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.2x, homes cost about 3.2 times the local median income of $63,735. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.7% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Abilene offers attractive fundamentals for rental investors. Strong population growth, and cap rates above 6% put it in the upper tier of investable markets.

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