Jacksonville, TX Cap Rate: 5.87% — Rental Property Analysis
Jacksonville is a budget-friendly market in the South with a small but investable metro of 50,000. At a 5.87% estimated cap rate, this is a solid market where rents of $1,670/mo lag behind home prices. With a median home price of $225,000 and steady population growth supports long-term rental demand, Jacksonville stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $225,000 median price and $1,670/mo median rent
Est. Cap Rate
5.87%
1% Rule
0.74%
Fails
GRM
11.2x
Price / Income
3.5x
Market Data
Median Home Price$225,000
Median Monthly Rent$1,670
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%
2026 Market Update: Jacksonville
Jacksonville's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $225,000, the $1,670/mo rent produces only $1,101/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 ($45K at 7%) would result in approximately $-96/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 19% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Jacksonville a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Cap Rate Calculator — Jacksonville
Pre-filled with Jacksonville 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
4.66%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,490
net operating income
Gross Rent Multiplier
11.2x
Good (<15)
1% Rule
0.74%
✗ Fails
Monthly Cash Flow
$874
before debt service
Annual Breakdown
Gross Rental Income$20,040
Less Vacancy−$1,162
Effective Income$18,878
Less Operating Expenses−$8,388
Net Operating Income$10,490
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Factor in financing to see your actual return on invested capital in Jacksonville.
$
$56,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-2.50%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$63,000
$56,250 down + $6,750 closing
Monthly Mortgage
$1,100
on $169K loan
Monthly Cash Flow
$-131
after all expenses
Annual Cash Flow
$-1,573
before taxes
Cash Flow Breakdown
Monthly Rent$1,670
Less Expenses−$701
Less Mortgage−$1,100
Monthly Cash Flow$-131
Is Jacksonville a Good Place to Invest in Rental Property?
Jacksonville, 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 $225,000 paired with median rents of $1,670/mo produces an estimated cap rate of 5.87%.
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 3.5x, homes cost about 3.5 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: Jacksonville presents moderate opportunities. Cap rates near 5.87% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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