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Cap Rate Analysis: Frisco, TX

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

Challenging for pure cash flow
Based on $520,000 median price and $2,100/mo median rent
Est. Cap Rate
2.04%
1% Rule
0.40%
Fails
GRM
20.6x
Price / Income
4.4x

Market Data

Median Home Price$520,000
Median Monthly Rent$2,100
Property Tax Rate1.8%
Population225,000
Population Growth4.2% / yr
Median Household Income$118,000
Vacancy Rate4.2%
Annual Appreciation3.5%

Cap Rate Calculator — Frisco

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.8% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
1.57%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,170
net operating income
Gross Rent Multiplier
20.6x
High (>15)
1% Rule
0.40%
✗ Fails
Monthly Cash Flow
$681
before debt service
Annual Breakdown
Gross Rental Income$25,200
Less Vacancy−$1,058
Effective Income$24,142
Less Operating Expenses−$15,972
Net Operating Income$8,170

Cash-on-Cash Return — Frisco

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

$
$130,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.92%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$145,600
$130,000 down + $15,600 closing
Monthly Mortgage
$2,543
on $390K loan
Monthly Cash Flow
$-1,325
after all expenses
Annual Cash Flow
$-15,894
before taxes
Cash Flow Breakdown
Monthly Rent$2,100
Less Expenses−$882
Less Mortgage−$2,543
Monthly Cash Flow$-1,325

Is Frisco a Good Place to Invest in Rental Property?

Frisco, TX has a population of 225,000 and has been growing at 4.2% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $520,000 paired with median rents of $2,100/mo produces an estimated cap rate of 2.04%.

Property taxes at 1.8% 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 4.2% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 4.4x, homes cost about 4.4 times the local median income of $118,000. 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 3.5% 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, Frisco 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.

Run a BRRRR analysis for Frisco
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