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MarketsTexasLufkin

Cap Rate Analysis: Lufkin, TX

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

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

Moderate — source deals carefully
Based on $195,000 median price and $1,360/mo median rent
Est. Cap Rate
5.36%
1% Rule
0.70%
Fails
GRM
11.9x
Price / Income
3.1x

Market Data

Median Home Price$195,000
Median Monthly Rent$1,360
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%

Cap Rate Calculator — Lufkin

Pre-filled with Lufkin 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
4.25%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,293
net operating income
Gross Rent Multiplier
11.9x
Good (<15)
1% Rule
0.70%
✗ Fails
Monthly Cash Flow
$691
before debt service
Annual Breakdown
Gross Rental Income$16,320
Less Vacancy−$947
Effective Income$15,373
Less Operating Expenses−$7,080
Net Operating Income$8,293
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Cash-on-Cash Return — Lufkin

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

$
$48,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-3.61%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$54,600
$48,750 down + $5,850 closing
Monthly Mortgage
$953
on $146K loan
Monthly Cash Flow
$-164
after all expenses
Annual Cash Flow
$-1,973
before taxes
Cash Flow Breakdown
Monthly Rent$1,360
Less Expenses−$571
Less Mortgage−$953
Monthly Cash Flow$-164

Is Lufkin a Good Place to Invest in Rental Property?

Lufkin, 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 $195,000 paired with median rents of $1,360/mo produces an estimated cap rate of 5.36%.

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 3.1x, homes cost about 3.1 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: Lufkin presents moderate opportunities. Cap rates near 5.36% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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