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El Campo, TX Cap Rate: 4.83% — Rental Property Analysis

El Campo is a budget-friendly market in the South with a small but investable metro of 50,000. At a 4.83% estimated cap rate, this is a moderate market where rents of $1,560/mo lag behind home prices. With a median home price of $240,000 and steady population growth supports long-term rental demand, El Campo offers opportunities for investors who source deals carefully.

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

Moderate — source deals carefully
Based on $240,000 median price and $1,560/mo median rent
Est. Cap Rate
4.83%
1% Rule
0.65%
Fails
GRM
12.8x
Price / Income
3.8x

Market Data

Median Home Price$240,000
Median Monthly Rent$1,560
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%

2026 Market Update: El Campo

El Campo's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $240,000, the $1,560/mo rent produces only $966/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 ($48K at 7%) would result in approximately $-311/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 22% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes El Campo a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.

Cap Rate Calculator — El Campo

Pre-filled with El Campo 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
3.82%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,174
net operating income
Gross Rent Multiplier
12.8x
Good (<15)
1% Rule
0.65%
✗ Fails
Monthly Cash Flow
$765
before debt service
Annual Breakdown
Gross Rental Income$18,720
Less Vacancy−$1,086
Effective Income$17,634
Less Operating Expenses−$8,460
Net Operating Income$9,174
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Cash-on-Cash Return — El Campo

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

$
$60,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.79%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$67,200
$60,000 down + $7,200 closing
Monthly Mortgage
$1,173
on $180K loan
Monthly Cash Flow
$-268
after all expenses
Annual Cash Flow
$-3,222
before taxes
Cash Flow Breakdown
Monthly Rent$1,560
Less Expenses−$655
Less Mortgage−$1,173
Monthly Cash Flow$-268

Is El Campo a Good Place to Invest in Rental Property?

El Campo, 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 $240,000 paired with median rents of $1,560/mo produces an estimated cap rate of 4.83%.

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 3.8x, homes cost about 3.8 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: El Campo presents moderate opportunities. Cap rates near 4.83% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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