Beaumont, TX Cap Rate 5.46%
Beaumont is the urban anchor of the Golden Triangle (Beaumont–Port Arthur–Orange) — one of the most concentrated petrochemical refining clusters in the US. The economy is structurally tied to energy and chemical manufacturing in a way few US metros are. The 5.46% cap rate at a $180,000 median price keeps the 0.71% rent-to-price ratio close to functional. Population growth at 1.8%/yr is essentially flat.
Employment is anchored by the Golden Triangle petrochemical cluster (ExxonMobil's Beaumont refinery is one of the largest in the US; Motiva's Port Arthur refinery is one of the largest single refineries in North America; the broader chemical manufacturing footprint includes BASF, Chevron Phillips Chemical, ExxonMobil Chemical, Total Petrochemicals — collectively one of the most concentrated refining/petrochem employment bases in the country, with continuing capital investment), the Port of Beaumont and Port of Port Arthur (major US Gulf petrochemical export ports), Lamar University (the regional public university with ~17K students), Christus Southeast Texas Health System and Baptist Hospitals of Southeast Texas, the broader Jefferson County government, and a meaningful logistics and trucking base. Submarkets stratify cleanly: the Old Town and Calder Avenue areas are walkable urban-historic with strong appreciation; the West End and Lumberton north of town draw professional family rentals; Nederland and Port Neches in the broader Golden Triangle have their own school districts and refinery-worker tenant base; the broader Beaumont zones offer deeper-value workforce inventory.
Texas has no state income tax (a structural cash-flow advantage). Property tax at 1.72% is on the higher end nationally. Jefferson County's appraisal cycle is annual. Insurance is the dominant operational variable — Beaumont sits in coastal Texas with significant hurricane exposure (Hurricane Harvey 2017, Hurricane Laura 2020, Hurricane Ike 2008 all hit the broader Golden Triangle). The Texas Windstorm Insurance Association (TWIA) is the insurer-of-last-resort for coastal counties; premiums have risen sharply. Get a binder quote per address — verify both standard and TWIA pricing. The structural advantages: petrochemical employment is genuinely durable across most economic cycles; the refining and chemical-export capacity is strategically important and continues to receive sustained capital investment; cost basis is among the lowest in Texas. The structural risks: hurricane exposure and insurance trajectory are real; petrochemical employment is sensitive to the broader energy-transition narrative and US refining capacity decisions; air-quality and environmental health considerations affect specific submarkets near refineries.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Beaumont
Beaumont's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $180,000, the $1,270/mo rent produces only $818/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($36K at 7%) would result in approximately $-140/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
Property taxes consume 20% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Beaumont a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Deal Modeling & Scenarios for Beaumont
All figures below are computed from Beaumont's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 1.72% effective rate on the $180,000 median price, the annual tax bill is $3,096 — that's very high (top 15% of US markets) (+62% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Beaumont continues appreciating at 2.7%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $180K | $1,270 | 5.5% |
| Year 1 | $185K | $1,308 | 5.5% |
| Year 2 | $190K | $1,347 | 5.5% |
| Year 3 | $195K | $1,388 | 5.5% |
| Year 4 | $200K | $1,429 | 5.5% |
| Year 5 | $206K | $1,472 | 5.5% |
Three Financing Scenarios
Same median-priced Beaumont property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $180K | $818 | $9,820 | 5.5% |
| 20% down conventional @ 7% | $41K | $-139 | $-1,671 | -4.0% |
| 25% down DSCR @ 8.5% | $52K | $-220 | $-2,638 | -5.1% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $135K | $1,080 | $7,273 | 5.4% | $606 |
| At median | $180K | $1,270 | $8,102 | 4.5% | $675 |
| Above median (~125% price) | $225K | $1,461 | $8,940 | 4.0% | $745 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Beaumont's historical appreciation rate of 2.7%:
On a $36K down payment, that's a 78.0% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Beaumont
Automated checks against the underlying data — surface only the risks that actually apply to Beaumont, not generic boilerplate:
Cap Rate Calculator — Beaumont
Pre-filled with Beaumont medians. Adjust to match a specific property.
Cash-on-Cash Return — Beaumont
Factor in financing to see your actual return on invested capital in Beaumont.
Is Beaumont a Good Place to Invest in Rental Property?
Beaumont, 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 $180,000 paired with median rents of $1,270/mo produces an estimated cap rate of 5.46%.
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 2.8x, homes cost about 2.8 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: Beaumont presents moderate opportunities. Cap rates near 5.46% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.