What's a good cap rate in Lubbock?

In Lubbock, cap rates typically run around 6.5% (Texas state 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 Lubbock deal lands versus this benchmark.

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

A typical rental in Lubbock runs about $1,175–$1,634/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 Lubbock deals. You can override it with the exact local rate.

Lubbock, TX

Lubbock rental property analysis

Lubbock is a stable West-Texas market built around Texas Tech — a large, renewing student base plus healthcare keeps demand reliably high.

Lubbock market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

6.5%

Texas state median

Typical rent

$1,175–$1,634/mo

HUD FMR · 2–3BR · 2026

Typical price

$190,000–$270,000

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 Lubbock a good place to buy rentals?

Texas Tech's ~40k students underpin demand and occupancy, with affordable entry. Model Texas taxes; near-campus submarkets are turnover-heavy.

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

Neighborhoods to look at in Lubbock

Tech Terrace

Near campus, high demand, desirable.

Southwest Lubbock

Newer SFRs, family renters, low vacancy.

North Lubbock

Affordable, value-add.

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

Run a Lubbock deal in 60 seconds

Paste a Lubbock 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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