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Plano vs Austin for Rental Property Investing

Side-by-side comparison of Plano, TX and Austin, TX — cap rates, rent, prices, and investment metrics.

Plano wins 4–3 across key metrics
Plano leads on cash flow (2.55% vs 2.47% cap rate) · Austin leads on population growth
Metric
Plano, TX
Austin, TX
Est. Cap Rate
2.55%
2.47%
Median Home Price
$420,000
$425,000
Median Monthly Rent
$1,900
$1,850
1% Rule
0.45%
0.44%
GRM
18.4x
19.1x
Price / Income
4.4x
5.1x
Property Tax Rate
1.82%
1.68%
Vacancy Rate
4.8%
5.2%
Population Growth
1.6% / yr
2.8% / yr
Annual Appreciation
3%
3.1%
Population
289,710
1,028,225
Median Income
$96,400
$82,900

Plano vs Austin: Which Is Better for Investors?

Cash flow: Plano has the edge with an estimated cap rate of 2.55% compared to Austin's 2.47%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $420,000 in Plano vs $425,000 in Austin, while rents come in at $1,900/mo and $1,850/mo respectively.

Growth & appreciation: Austin is growing faster at 2.8% annually vs Plano's 1.6%. Austin leads on home value appreciation at 3.1% per year. Strong population growth typically translates to sustained rental demand and long-term price support.

Costs & risk: Property taxes are 1.82% in Plano vs 1.68% in Austin. Vacancy rates of 4.8% and 5.2% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Plano edges out Austin on most key metrics. While cap rates are moderate at 2.55%, Plano's overall profile is stronger. Use our free calculators to model specific deals in Plano or Austin.

Plano, TX
2.55% cap rate · $420,000 median · $1,900/mo
Full analysis →
Austin, TX
2.47% cap rate · $425,000 median · $1,850/mo
Full analysis →
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