Best cities in Texas
for rental cash flow in 2026.

We modeled a typical home in 73 Texas cities with at least 50,000 residents, using August 2026 Zillow home values and rents, this week's Freddie Mac mortgage rate, each city's effective property tax rate and the same assumptions everywhere.

Key finding: Port Arthur leads Texas with a 5.76% modeled cap rate. With 25% down at 7.03%, a typical home produces positive monthly cash flow in none of the 73 cities. Property taxes are the main headwind here: the median effective rate is 1.58% versus 0.85% nationally.

Data updated September 26, 2026 · Home values and rents: Zillow, August 2026 · Mortgage rate: Freddie Mac, week of September 24, 2026 · Download the Texas data (CSV)

Top cityPort Arthur5.76% modeled cap rate

Cities analyzed73population 50,000+

Positive modeled cash flow0 of 73typical home at typical rent

Median modeled cap rate2.24%2.89% in large U.S. cities

Landlord insurance estimate$3,580per year · $2,069 U.S. median

All 73 Texas cities, ranked.

Ranked by modeled cap rate: net operating income after vacancy, taxes, insurance, maintenance and management, divided by the typical home value. Cash flow also subtracts the mortgage and capital reserves.

#	City	Typical home value	Typical rent	Property tax rate	Gross yield	Modeled cap rate	Modeled monthly cash flow	Analyze
1	Port Arthur	$127,534	$1,288	1.42%	12.12%	5.76%	-$90	Model it
2	Brownsville	$199,327	$1,583	1.68%	9.53%	4.38%	-$350	Model it
3	Wichita Falls	$176,929	$1,362	1.68%	9.24%	3.91%	-$377	Model it
4	DeSoto	$320,428	$2,130	1.66%	7.98%	3.79%	-$698	Model it
5	Beaumont	$174,699	$1,243	1.58%	8.54%	3.41%	-$440	Model it
6	Waco	$197,932	$1,363	1.60%	8.26%	3.40%	-$497	Model it
7	Missouri City	$333,316	$2,117	1.85%	7.62%	3.36%	-$841	Model it
8	Odessa	$251,624	$1,553	1.39%	7.41%	3.29%	-$646	Model it
9	Pasadena	$218,883	$1,378	1.38%	7.55%	3.21%	-$579	Model it
10	Baytown	$245,229	$1,549	1.61%	7.58%	3.18%	-$656	Model it
11	Little Elm	$393,657	$2,307	1.76%	7.03%	3.12%	-$1,062	Model it
12	Corpus Christi	$223,078	$1,424	1.61%	7.66%	3.10%	-$612	Model it
13	San Angelo	$212,773	$1,304	1.36%	7.35%	3.01%	-$596	Model it
14	Amarillo	$211,528	$1,330	1.52%	7.55%	3.00%	-$596	Model it
15	Lubbock	$212,039	$1,333	1.57%	7.54%	2.96%	-$605	Model it
16	Houston	$261,740	$1,542	1.51%	7.07%	2.95%	-$744	Model it
17	Texas City	$227,222	$1,323	1.26%	6.99%	2.92%	-$650	Model it
18	Atascocita	$307,522	$1,808	1.83%	7.06%	2.82%	-$907	Model it
19	El Paso	$238,475	$1,519	2.04%	7.64%	2.76%	-$721	Model it
20	Mesquite	$258,678	$1,471	1.57%	6.82%	2.67%	-$793	Model it
21	Mission	$219,583	$1,351	1.79%	7.38%	2.66%	-$680	Model it
22	Garland	$283,276	$1,556	1.57%	6.59%	2.59%	-$883	Model it
23	Killeen	$219,533	$1,273	1.52%	6.96%	2.58%	-$690	Model it
24	Tyler	$252,481	$1,314	1.17%	6.25%	2.56%	-$791	Model it
25	Temple	$245,701	$1,381	1.57%	6.74%	2.53%	-$780	Model it
26	Fort Worth	$295,800	$1,615	1.71%	6.55%	2.48%	-$951	Model it
27	Pharr	$165,451	$1,124	2.08%	8.15%	2.47%	-$543	Model it
28	Harlingen	$201,967	$1,158	1.46%	6.88%	2.43%	-$659	Model it
29	Midland	$330,434	$1,599	1.27%	5.81%	2.43%	-$1,065	Model it
30	Burleson	$337,266	$1,731	1.60%	6.16%	2.41%	-$1,096	Model it
31	Dallas	$305,765	$1,591	1.58%	6.24%	2.39%	-$1,000	Model it
32	Grand Prairie	$314,397	$1,647	1.68%	6.29%	2.36%	-$1,036	Model it
33	San Antonio	$247,453	$1,386	1.75%	6.72%	2.34%	-$825	Model it
34	League City	$373,552	$1,838	1.63%	5.90%	2.28%	-$1,252	Model it
35	McAllen	$229,066	$1,283	1.73%	6.72%	2.25%	-$781	Model it
36	Bryan	$273,941	$1,406	1.53%	6.16%	2.24%	-$930	Model it
37	Victoria	$218,636	$1,193	1.52%	6.55%	2.24%	-$746	Model it
38	Longview	$235,107	$1,174	1.19%	5.99%	2.22%	-$800	Model it
39	Galveston	$317,544	$1,405	1.08%	5.31%	2.17%	-$1,085	Model it
40	Kyle	$294,393	$1,555	1.84%	6.34%	2.16%	-$1,021	Model it
41	Spring	$363,173	$1,795	1.74%	5.93%	2.16%	-$1,253	Model it
42	New Braunfels	$346,475	$1,571	1.33%	5.44%	2.12%	-$1,199	Model it
43	Conroe	$312,928	$1,561	1.70%	5.99%	2.09%	-$1,100	Model it
44	Irving	$339,198	$1,590	1.51%	5.63%	2.07%	-$1,191	Model it
45	Wylie	$412,915	$1,914	1.65%	5.56%	2.06%	-$1,452	Model it
46	Sugar Land	$442,326	$2,032	1.70%	5.51%	2.03%	-$1,567	Model it
47	Euless	$354,647	$1,602	1.46%	5.42%	2.00%	-$1,265	Model it
48	Arlington	$309,891	$1,462	1.55%	5.66%	1.96%	-$1,117	Model it
49	Pearland	$380,787	$1,898	2.06%	5.98%	1.93%	-$1,389	Model it
50	San Marcos	$306,851	$1,428	1.54%	5.58%	1.90%	-$1,122	Model it
51	Round Rock	$398,221	$1,741	1.53%	5.25%	1.89%	-$1,453	Model it
52	Flower Mound	$604,723	$2,410	1.48%	4.78%	1.87%	-$2,206	Model it
53	Laredo	$222,782	$1,191	1.82%	6.42%	1.85%	-$830	Model it
54	Pflugerville	$366,482	$1,639	1.63%	5.37%	1.82%	-$1,361	Model it
55	Leander	$421,703	$1,899	1.79%	5.40%	1.81%	-$1,570	Model it
56	Rowlett	$364,063	$1,586	1.59%	5.23%	1.73%	-$1,376	Model it
57	Carrollton	$400,642	$1,655	1.46%	4.96%	1.73%	-$1,510	Model it
58	Denton	$346,719	$1,519	1.58%	5.26%	1.72%	-$1,314	Model it
59	North Richland Hills	$367,768	$1,541	1.51%	5.03%	1.66%	-$1,409	Model it
60	Lewisville	$387,166	$1,557	1.53%	4.83%	1.52%	-$1,525	Model it
61	Georgetown	$420,930	$1,621	1.46%	4.62%	1.50%	-$1,661	Model it
62	Rockwall	$474,989	$1,762	1.47%	4.45%	1.45%	-$1,892	Model it
63	Richardson	$438,611	$1,669	1.50%	4.57%	1.44%	-$1,751	Model it
64	College Station	$345,836	$1,419	1.65%	4.92%	1.37%	-$1,407	Model it
65	Plano	$493,092	$1,742	1.44%	4.24%	1.33%	-$2,009	Model it
66	McKinney	$472,118	$1,773	1.65%	4.51%	1.30%	-$1,939	Model it
67	Mansfield	$443,697	$1,735	1.86%	4.69%	1.20%	-$1,864	Model it
68	Cedar Park	$461,620	$1,727	1.73%	4.49%	1.19%	-$1,938	Model it
69	Edinburg	$217,369	$1,029	1.90%	5.68%	1.13%	-$934	Model it
70	Allen	$485,393	$1,714	1.69%	4.24%	1.06%	-$2,085	Model it
71	Grapevine	$553,270	$1,771	1.48%	3.84%	1.04%	-$2,377	Model it
72	Austin	$497,418	$1,586	1.44%	3.83%	0.99%	-$2,159	Model it
73	Frisco	$638,512	$1,874	1.49%	3.52%	0.85%	-$2,837	Model it

Held out for data review: Abilene (Zillow rent up 36% in a year). They return automatically once the figures are consistent again.

Not ranked because Zillow does not publish both a value and a rent index for them: The Woodlands.

What it takes to cash flow in Texas.

Number of the 73 cities where a typical home produces positive monthly cash flow, by down payment and mortgage rate.

Down payment	6.03%	6.53%	7.03% (this week)	7.53%
20%	0	0	0	0
25%	0	0	0	0
30%	1	0	0	0
40%	1	1	1	1

Second-source check: 64 of 73 Zillow rents are within ±25% of the HUD FY2027 Fair Market Rent for a two-bedroom home in the same area. Using HUD rents instead, 0 cities cash flow.

Questions about Texas rentals

Which Texas city has the best rental cash flow?

Port Arthur ranks first among 73 Texas cities with at least 50,000 residents, with a modeled cap rate of 5.76% and modeled cash flow of -$90 a month on a typical home ($127,534) at typical rent ($1,288), with 25% down at 7.03%.

Do rental properties cash flow in Texas?

At typical prices and rents, rarely. With 25% down at this week's 7.03% average rate and a full expense budget, a typical home produces positive monthly cash flow in 0 of 73 Texas cities we analyzed. Buying below the typical price, putting more money down or finding above-typical rent changes the result.

How much do property taxes affect rentals in Texas?

A lot. The median effective property tax rate across the Texas cities in this ranking is 1.58%, compared with 0.85% across 340 large U.S. cities. On a $300,000 home that difference is about $2,179 a year.

Methodology

Same model and sources as our national ranking: Zillow ZHVI and ZORI for August 2026, the Freddie Mac 30-year average for the week of September 24, 2026, each city's effective property tax rate from the Census ACS 2024 5-year estimates applied to the current value, and the NAIC 2023 Texas average homeowners premium plus 25% for a landlord policy. Everything else is identical for every city: 25% down, a 30-year loan, 5% vacancy, 5% maintenance, 8% management and 5% capital reserves. Typical values and rents describe a whole city, not a specific property; use the ranking to decide where to look, then analyze real listings.

Data: Zillow Home Value Index and Zillow Observed Rent Index (August 2026); Freddie Mac PMMS; U.S. Census Bureau ACS; NAIC; HUD Fair Market Rents. Updated automatically when new data is published.

Best cities in Texasfor rental cash flow in 2026.