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Rent Analysis: Sulphur Springs, TX

Updated 2026 · Based on median market data for Sulphur Springs, TX

Cap Rate
3.38%
Median Price
$255K
Rent/Mo
$1,330
1% Rule
0.52%
Fails

Rent Overview

The median monthly rent in Sulphur Springs, TX is $1,330, translating to $15,960 in annual gross rental income per unit. The rent-to-price ratio is 0.52% — well below the 1% rule, making pure cash flow investing challenging at median prices.

Rent Affordability

Renters in Sulphur Springs spend approximately 25% 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 Sulphur Springs 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

Sulphur Springs's GRM (price divided by annual rent) is 16.0x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.

Rental Income Projection

At the median rent of $1,330/mo, a single-family rental in Sulphur Springs generates approximately $15,960 in gross annual income. After accounting for 5.8% vacancy ($926 lost), property taxes of $4,386, insurance (~$1,020), and maintenance (~$1,020), the estimated NOI is $8,608 per year, or $717/mo.

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How Sulphur Springs Compares

Sulphur Springs vs Texas state average and national average across key investment metrics. Sulphur Springs's cap rate is below both benchmarks — deal sourcing is critical here.

Metric
Sulphur Springs
Texas Avg
National Avg
Cap Rate
3.38%
3.89%
3.81%
Median Price
$255K
$264K
$333K
Median Rent
$1,330
$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
Sulphur Springs, TX
3.4%
$255K
$1,330
1.72%
Birmingham, AL
5.0%
$255K
$1,410
0.42%
Fayetteville, NC
4.9%
$255K
$1,480
0.79%
New Orleans, LA
5.6%
$255K
$1,580
0.55%
Hoover, AL
5.1%
$255K
$1,410
0.41%

Frequently Asked Questions

What is the average rent in Sulphur Springs, TX?
The median monthly rent in Sulphur Springs is $1,330, or $15,960 per year. This is 13% 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 Sulphur Springs a good rental market for landlords?
With a rent-to-price ratio of 0.52%, Sulphur Springs 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 Sulphur Springs rent compare to Texas averages?
Sulphur Springs's median rent of $1,330/mo is 6% below the Texas average of $1,415/mo. Home prices at $255K are below the state average of $264K, giving Sulphur Springs a rent-to-price ratio of 0.52% 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). Sulphur Springs's ratio is 0.52%. 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 Sulphur Springs & Related Markets

More Sulphur Springs Guides

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

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