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MarketsTexasHuntsville

Cap Rate Analysis: Huntsville, TX

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

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

Challenging for pure cash flow
Based on $270,000 median price and $1,260/mo median rent
Est. Cap Rate
2.76%
1% Rule
0.47%
Fails
GRM
17.9x
Price / Income
4.2x

Market Data

Median Home Price$270,000
Median Monthly Rent$1,260
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%

Cap Rate Calculator — Huntsville

Pre-filled with Huntsville 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
2.15%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$5,795
net operating income
Gross Rent Multiplier
17.9x
High (>15)
1% Rule
0.47%
✗ Fails
Monthly Cash Flow
$483
before debt service
Annual Breakdown
Gross Rental Income$15,120
Less Vacancy−$877
Effective Income$14,243
Less Operating Expenses−$8,448
Net Operating Income$5,795
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Cash-on-Cash Return — Huntsville

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

$
$67,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.35%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$75,600
$67,500 down + $8,100 closing
Monthly Mortgage
$1,320
on $203K loan
Monthly Cash Flow
$-589
after all expenses
Annual Cash Flow
$-7,070
before taxes
Cash Flow Breakdown
Monthly Rent$1,260
Less Expenses−$529
Less Mortgage−$1,320
Monthly Cash Flow$-589

Is Huntsville a Good Place to Invest in Rental Property?

Huntsville, 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 $270,000 paired with median rents of $1,260/mo produces an estimated cap rate of 2.76%.

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 4.2x, homes cost about 4.2 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: At current median prices, Huntsville 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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