Kingsville, TX Cap Rate: 8.18% — Rental Property Analysis
Kingsville is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 8.18% estimated cap rate, this is a high-yield market where rents at $1,420/mo track reasonably with home values. With a median home price of $150,000 and steady population growth supports long-term rental demand, Kingsville 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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Strong investment fundamentals
Based on $150,000 median price and $1,420/mo median rent
Est. Cap Rate
8.18%
1% Rule
0.95%
Fails
GRM
8.8x
Price / Income
2.4x
Market Data
Median Home Price$150,000
Median Monthly Rent$1,420
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%
2026 Market Update: Kingsville
At a 0.9% rent-to-price ratio, Kingsville falls just below the 1% rule threshold. A median-priced property at $150,000 with $1,420/mo rent yields approximately $1,023/mo in NOI — workable with favorable financing but not a slam-dunk cash flow market.
With 20% down ($30K) on a 7% conventional loan, estimated monthly cash flow is $225 — a 9.0% cash-on-cash return. That's strong enough to weather vacancies and unexpected repairs without dipping into reserves.
With 1.8% annual population growth paired with 2.7% home appreciation, Kingsville offers a rare combination of current cash flow and future equity upside. The 8.8x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Cap Rate Calculator — Kingsville
Pre-filled with Kingsville 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
6.53%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$9,800
net operating income
Gross Rent Multiplier
8.8x
Good (<15)
1% Rule
0.95%
✗ Fails
Monthly Cash Flow
$817
before debt service
Annual Breakdown
Gross Rental Income$17,040
Less Vacancy−$988
Effective Income$16,052
Less Operating Expenses−$6,252
Net Operating Income$9,800
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Factor in financing to see your actual return on invested capital in Kingsville.
$
$37,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
2.59%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$42,000
$37,500 down + $4,500 closing
Monthly Mortgage
$733
on $113K loan
Monthly Cash Flow
$91
after all expenses
Annual Cash Flow
$1,087
before taxes
Cash Flow Breakdown
Monthly Rent$1,420
Less Expenses−$596
Less Mortgage−$733
Monthly Cash Flow$91
Is Kingsville a Good Place to Invest in Rental Property?
Kingsville, 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 $150,000 paired with median rents of $1,420/mo produces an estimated cap rate of 8.18%.
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 2.4x, homes cost about 2.4 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: Kingsville offers attractive fundamentals for rental investors. Strong population growth, and cap rates above 6% put it in the upper tier of investable markets.
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