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MarketsTexasLufkinRent Analysis

Rent Analysis: Lufkin, TX

Updated 2026 · Based on median market data for Lufkin, TX

Cap Rate
5.36%
Median Price
$195K
Rent/Mo
$1,360
1% Rule
0.70%
Fails

Rent Overview

The median monthly rent in Lufkin, TX is $1,360, translating to $16,320 in annual gross rental income per unit. The rent-to-price ratio is 0.70% — well below the 1% rule, making pure cash flow investing challenging at median prices.

Rent Affordability

Renters in Lufkin spend approximately 26% of the local median household income ($63,735) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units.

Vacancy & Tenant Demand

The vacancy rate in Lufkin is 5.8%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 1.8% annually is actively adding rental demand.

Gross Rent Multiplier

Lufkin's GRM (price divided by annual rent) is 11.9x. A GRM under 12x is excellent — it means you're paying less than 12 years of gross rent for the property, suggesting strong income relative to price. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.

Rental Income Projection

At the median rent of $1,360/mo, a single-family rental in Lufkin generates approximately $16,320 in gross annual income. After accounting for 5.8% vacancy ($947 lost), property taxes of $3,354, insurance (~$780), and maintenance (~$780), the estimated NOI is $10,459 per year, or $872/mo.

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How Lufkin Compares

Lufkin vs Texas state average and national average across key investment metrics. Lufkin outperforms both benchmarks on cap rate.

Metric
Lufkin
Texas Avg
National Avg
Cap Rate
5.36%
3.89%
3.81%
Median Price
$195K
$264K
$333K
Median Rent
$1,360
$1,415
$1,524
Property Tax
1.72%
1.72%
1.08%
Vacancy
5.8%
5.8%
5.6%
Pop. Growth
1.8%/yr
1.8%/yr
0.9%/yr

Nearby South Markets

City
Cap Rate
Price
Rent
Tax
Lufkin, TX
5.4%
$195K
$1,360
1.72%
Lafayette, LA
6.3%
$195K
$1,330
0.52%
Lake Charles, LA
5.3%
$195K
$1,150
0.54%
LaGrange, GA
5.5%
$195K
$1,250
0.93%
Rocky Mount, NC
5.7%
$195K
$1,250
0.78%

Frequently Asked Questions

What is the average rent in Lufkin, TX?
The median monthly rent in Lufkin is $1,360, or $16,320 per year. This is 11% below the national average of $1,524/mo. Rent levels vary by neighborhood, property condition, and unit size — always verify comparable rents for your target property.
Is Lufkin a good rental market for landlords?
With a rent-to-price ratio of 0.70%, Lufkin falls below the 1% rule, meaning cash flow depends on buying below median or achieving above-median rents. The 5.8% vacancy rate signals tight rental demand, favorable for landlords.
How does Lufkin rent compare to Texas averages?
Lufkin's median rent of $1,360/mo is 4% below the Texas average of $1,415/mo. Home prices at $195K are below the state average of $264K, giving Lufkin a rent-to-price ratio of 0.70% vs 0.54% statewide.
What is a good rent-to-price ratio?
The 1% rule says monthly rent should be at least 1% of purchase price ($1,000/mo rent on a $100,000 home). Lufkin's ratio is 0.70%. Generally, above 0.8% is workable with good financing, above 1% is strong, and above 1.2% is exceptional. The national average across the 300+ cities we track is 0.46%.
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Explore Lufkin & Related Markets

More Lufkin Guides

Rental Property Investment GuideProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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