Big Spring is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 7.25% estimated cap rate, this is a high-yield market where rents of $1,210/mo lag behind home prices. With a median home price of $140,000 and steady population growth supports long-term rental demand, Big Spring stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
At a 0.9% rent-to-price ratio, Big Spring falls just below the 1% rule threshold. A median-priced property at $140,000 with $1,210/mo rent yields approximately $846/mo in NOI — workable with favorable financing but not a slam-dunk cash flow market.
On a conventional loan with 20% down ($28K) at 7%, estimated monthly cash flow is $101 — a thin 4.3% cash-on-cash return. Investors should negotiate below asking price or target properties with above-median rents to build a meaningful cash flow buffer.
With 1.8% annual population growth paired with 2.7% home appreciation, Big Spring offers a rare combination of current cash flow and future equity upside. The 9.6x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Pre-filled with Big Spring medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Big Spring.
Big Spring, 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 $140,000 paired with median rents of $1,210/mo produces an estimated cap rate of 7.25%.
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 2.2x, homes cost about 2.2 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: Big Spring offers attractive fundamentals for rental investors. Strong population growth, and cap rates above 6% put it in the upper tier of investable markets.