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MarketsTexasWichita Falls

Cap Rate Analysis: Wichita Falls, TX

Investment metrics, interactive calculators, and data-driven analysis for Wichita Falls 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 $170,000 median price and $1,260/mo median rent
Est. Cap Rate
5.86%
1% Rule
0.74%
Fails
GRM
11.2x
Price / Income
2.7x

Market Data

Median Home Price$170,000
Median Monthly Rent$1,260
Property Tax Rate1.72%
Population50,000
Population Growth1.8% / yr
Median Household Income$63,735
Vacancy Rate5.8%
Annual Appreciation2.7%

Cap Rate Calculator — Wichita Falls

Pre-filled with Wichita Falls 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
4.65%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,907
net operating income
Gross Rent Multiplier
11.2x
Good (<15)
1% Rule
0.74%
✗ Fails
Monthly Cash Flow
$659
before debt service
Annual Breakdown
Gross Rental Income$15,120
Less Vacancy−$877
Effective Income$14,243
Less Operating Expenses−$6,336
Net Operating Income$7,907
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Cash-on-Cash Return — Wichita Falls

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

$
$42,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-2.53%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$47,600
$42,500 down + $5,100 closing
Monthly Mortgage
$831
on $128K loan
Monthly Cash Flow
$-100
after all expenses
Annual Cash Flow
$-1,202
before taxes
Cash Flow Breakdown
Monthly Rent$1,260
Less Expenses−$529
Less Mortgage−$831
Monthly Cash Flow$-100

Is Wichita Falls a Good Place to Invest in Rental Property?

Wichita Falls, 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 $170,000 paired with median rents of $1,260/mo produces an estimated cap rate of 5.86%.

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 2.7x, homes cost about 2.7 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: Wichita Falls presents moderate opportunities. Cap rates near 5.86% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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