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MarketsTexasKerrville

Cap Rate Analysis: Kerrville, TX

Investment metrics, interactive calculators, and data-driven analysis for Kerrville 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 $360,000 median price and $1,800/mo median rent
Est. Cap Rate
3.13%
1% Rule
0.50%
Fails
GRM
16.7x
Price / Income
5.6x

Market Data

Median Home Price$360,000
Median Monthly Rent$1,800
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%

Cap Rate Calculator — Kerrville

Pre-filled with Kerrville 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
2.45%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,827
net operating income
Gross Rent Multiplier
16.7x
High (>15)
1% Rule
0.50%
✗ Fails
Monthly Cash Flow
$736
before debt service
Annual Breakdown
Gross Rental Income$21,600
Less Vacancy−$1,253
Effective Income$20,347
Less Operating Expenses−$11,520
Net Operating Income$8,827
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Cash-on-Cash Return — Kerrville

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

$
$90,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.53%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$100,800
$90,000 down + $10,800 closing
Monthly Mortgage
$1,760
on $270K loan
Monthly Cash Flow
$-716
after all expenses
Annual Cash Flow
$-8,594
before taxes
Cash Flow Breakdown
Monthly Rent$1,800
Less Expenses−$756
Less Mortgage−$1,760
Monthly Cash Flow$-716

Is Kerrville a Good Place to Invest in Rental Property?

Kerrville, 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 $360,000 paired with median rents of $1,800/mo produces an estimated cap rate of 3.13%.

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 5.6x, homes cost about 5.6 times the local median income of $63,735. This moderate ratio indicates a balanced rent-vs-buy market. 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, Kerrville 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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