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Cap Rate Analysis: Arlington, TX

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

Challenging for pure cash flow
Based on $295,000 median price and $1,480/mo median rent
Est. Cap Rate
3.10%
1% Rule
0.50%
Fails
GRM
16.6x
Price / Income
4.9x

Market Data

Median Home Price$295,000
Median Monthly Rent$1,480
Property Tax Rate1.77%
Population398,854
Population Growth1.3% / yr
Median Household Income$60,200
Vacancy Rate5.9%
Annual Appreciation2.7%

Cap Rate Calculator — Arlington

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.77% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.41%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,124
net operating income
Gross Rent Multiplier
16.6x
High (>15)
1% Rule
0.50%
✗ Fails
Monthly Cash Flow
$594
before debt service
Annual Breakdown
Gross Rental Income$17,760
Less Vacancy−$1,048
Effective Income$16,712
Less Operating Expenses−$9,588
Net Operating Income$7,124

Cash-on-Cash Return — Arlington

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

$
$73,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.49%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$82,600
$73,750 down + $8,850 closing
Monthly Mortgage
$1,442
on $221K loan
Monthly Cash Flow
$-584
after all expenses
Annual Cash Flow
$-7,013
before taxes
Cash Flow Breakdown
Monthly Rent$1,480
Less Expenses−$622
Less Mortgage−$1,442
Monthly Cash Flow$-584

Is Arlington a Good Place to Invest in Rental Property?

Arlington, TX has a population of 398,854 and has been growing at 1.3% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $295,000 paired with median rents of $1,480/mo produces an estimated cap rate of 3.10%.

Property taxes at 1.77% 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 5.9% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.9x, homes cost about 4.9 times the local median income of $60,200. This moderate ratio indicates a balanced rent-vs-buy market. 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: At current median prices, Arlington is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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