What's a good cap rate in Austin?

In Austin, cap rates typically run around 5.0% (Austin metro median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Austin deal lands versus this benchmark.

What's the average rent for a rental in Austin?

A typical rental in Austin runs about $1,852–$2,347/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Texas?

Texas's effective property tax rate is about 1.68% of value per year — the figure TrueCap applies by default for Austin deals. You can override it with the exact local rate.

Austin, TX

Austin rental property analysis

Austin is a tech-driven growth market with strong in-migration and no state income tax — but high prices and Texas property taxes keep day-one cash flow tight.

Austin market snapshot

Appreciation market

Compressed cap rates — the play here is long-term price growth over day-one cash flow.

Typical cap rate

5.0%

Austin metro median

Typical rent

$1,852–$2,347/mo

HUD FMR · 2–3BR · 2026

Typical price

$400,000–$550,000

est., all-in

Property tax

1.68%

Texas effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Austin a good place to buy rentals?

An appreciation-and-rent-growth play, not a cash-flow market. Model the real Texas property-tax bill carefully — it's the line that sinks otherwise-fine Austin deals.

See the full Texasinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Austin

Pflugerville

Suburb with newer SFRs, family renters, low vacancy.

Round Rock

Tech-job adjacency, steady demand, better value than core.

East Austin edges

Appreciation-led, younger renters, premium pricing.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Austin deal in 60 seconds

Paste a Austin address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Texas tax and HUD rent so you start from the right assumptions.

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