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MarketsTexasVictoria

Cap Rate Analysis: Victoria, TX

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

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

Challenging for pure cash flow
Based on $215,000 median price and $1,180/mo median rent
Est. Cap Rate
3.68%
1% Rule
0.55%
Fails
GRM
15.2x
Price / Income
3.4x

Market Data

Median Home Price$215,000
Median Monthly Rent$1,180
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%

Cap Rate Calculator — Victoria

Pre-filled with Victoria 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
2.90%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,235
net operating income
Gross Rent Multiplier
15.2x
High (>15)
1% Rule
0.55%
✗ Fails
Monthly Cash Flow
$520
before debt service
Annual Breakdown
Gross Rental Income$14,160
Less Vacancy−$821
Effective Income$13,339
Less Operating Expenses−$7,104
Net Operating Income$6,235
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Cash-on-Cash Return — Victoria

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

$
$53,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.32%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$60,200
$53,750 down + $6,450 closing
Monthly Mortgage
$1,051
on $161K loan
Monthly Cash Flow
$-367
after all expenses
Annual Cash Flow
$-4,407
before taxes
Cash Flow Breakdown
Monthly Rent$1,180
Less Expenses−$496
Less Mortgage−$1,051
Monthly Cash Flow$-367

Is Victoria a Good Place to Invest in Rental Property?

Victoria, 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 $215,000 paired with median rents of $1,180/mo produces an estimated cap rate of 3.68%.

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 3.4x, homes cost about 3.4 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: At current median prices, Victoria is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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