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Cap Rate Analysis: Fort Worth, TX

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

Challenging for pure cash flow
Based on $320,000 median price and $1,520/mo median rent
Est. Cap Rate
2.80%
1% Rule
0.47%
Fails
GRM
17.5x
Price / Income
5.1x

Market Data

Median Home Price$320,000
Median Monthly Rent$1,520
Property Tax Rate1.79%
Population958,692
Population Growth2.4% / yr
Median Household Income$62,800
Vacancy Rate5.5%
Annual Appreciation3.2%

Cap Rate Calculator — Fort Worth

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.79% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.17%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,941
net operating income
Gross Rent Multiplier
17.5x
High (>15)
1% Rule
0.47%
✗ Fails
Monthly Cash Flow
$578
before debt service
Annual Breakdown
Gross Rental Income$18,240
Less Vacancy−$1,003
Effective Income$17,237
Less Operating Expenses−$10,296
Net Operating Income$6,941

Cash-on-Cash Return — Fort Worth

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

$
$80,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.14%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$89,600
$80,000 down + $9,600 closing
Monthly Mortgage
$1,565
on $240K loan
Monthly Cash Flow
$-683
after all expenses
Annual Cash Flow
$-8,191
before taxes
Cash Flow Breakdown
Monthly Rent$1,520
Less Expenses−$638
Less Mortgage−$1,565
Monthly Cash Flow$-683

Is Fort Worth a Good Place to Invest in Rental Property?

Fort Worth, TX has a population of 958,692 and has been growing at 2.4% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $320,000 paired with median rents of $1,520/mo produces an estimated cap rate of 2.80%.

Property taxes at 1.79% 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 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.1x, homes cost about 5.1 times the local median income of $62,800. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.2% 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, Fort Worth 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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