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MarketsTexasTexarkanaCost of Living & Affordability

Cost of Living & Affordability: Texarkana, TX

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

Cap Rate
4.84%
Median Price
$175K
Rent/Mo
$1,140
1% Rule
0.65%
Fails

Housing Affordability

Texarkana's price-to-income ratio is 2.7x — homes cost 2.7 times the local median household income of $63,735. This is very affordable. Homes are well within reach of local workers, which can mean a smaller renter pool but also a healthier, more stable market. Rental demand comes from those who choose to rent rather than those priced out of buying.

Rent vs Buy Analysis

A typical mortgage payment on a median-priced home in Texarkana (20% down at 7%) is approximately $1,164/mo for principal and interest alone — add taxes and insurance and the all-in payment reaches roughly $1,473. The median rent of $1,140/mo is roughly comparable to buying costs — in this environment, renters choose flexibility while buyers choose equity building. When renting is cheaper than buying, the renter pool stays deep and vacancy stays low.

Income & Employment

The median household income in Texarkana is $63,735, with a population of 50,000 growing at 1.8% per year. Texarkana is a smaller market. Research the local employment base carefully — smaller cities can be significantly impacted by a single employer's decisions. Moderate population growth indicates a stable economic foundation.

What This Means for Investors

Texarkana is affordable with moderate returns. Focus on volume — the low entry point lets you scale to multiple properties faster than in more expensive markets.

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How Texarkana Compares

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

Metric
Texarkana
Texas Avg
National Avg
Cap Rate
4.84%
3.89%
3.81%
Median Price
$175K
$264K
$333K
Median Rent
$1,140
$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
Texarkana, TX
4.8%
$175K
$1,140
1.72%
Shreveport, LA
6.9%
$175K
$1,300
0.54%
Ardmore, OK
5.9%
$175K
$1,170
0.88%
Enterprise, AL
7.9%
$175K
$1,420
0.42%
Houma, LA
7.1%
$175K
$1,320
0.54%

Frequently Asked Questions

Is Texarkana affordable for renters?
Renters in Texarkana spend approximately 21% of median household income on rent. This is within the standard 30% affordability threshold, suggesting renters have room in their budgets. The median household income is $63,735, below the level needed for comfortable renting.
What is the price-to-income ratio in Texarkana?
Texarkana's price-to-income ratio is 2.7x, meaning homes cost 2.7 times the local median income. This is very affordable — below the 4x threshold that typically signals a healthy buyer's market.
Is it cheaper to rent or buy in Texarkana?
A mortgage payment (20% down, 7% rate) on the median $175K home is approximately $931/mo before taxes and insurance. Adding those costs brings it to roughly $1,240/mo. The median rent of $1,140/mo is less than the cost of buying — this parity means some renters could transition to buying.
How does Texarkana's cost of living compare to the national average?
Home prices in Texarkana ($175K) are 48% below the national average. Rents ($1,140/mo) are 25% below average. Property taxes (1.72%) are above the 1.08% national average.
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Explore Texarkana & Related Markets

More Texarkana Guides

Rental Property Investment GuideRent AnalysisProperty Tax GuideAppreciation & Growth ForecastNeighborhood Investment Guide

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