Four Amazing Rental Markets for Real Estate Investors in Texas

Rental markets are one of the most profit-generating, appealing investment opportunities for those navigating the real estate industry. Texas continues to outperform most other states in the US when it comes to providing affordable properties that are also surrounded by massively exploding economies, populations, and real estate values. Having the tools to get started investing in Texas, and knowing where to invest, can make you into a hyper-successful rental property investor quickly. If this dream is for you, here is a valuable guide covering what to look for in rental properties, and four amazing rental markets within Texas to consider:

Key Qualities to Look For:

Landlord-Friendly Laws:

Texas is one of the most landlord-friendly states in the US. The lack of income tax, laxer real estate codes and laws, and more convenient access to the materials you’ll need to handle legal needs will all assist you as you invest in the state. The wacky amount of advantages you’ll have as an investor in Texas compared to other states is difficult to overstate. The accessible nature of capital and co-investing options in the state makes the deal that much sweeter.

Steady Population Growth Rate:

With rental properties, having a solid crop of potential clients is crucial. If you find a spot with a steady population growth rate, your investment will be rock solid. Thankfully, Texas has nearly endless towns that are seeing their populations grow consistently over the last decade. This quality becomes one of the key reasons Texas has become a gold standard for rental property investment in the United States.

Booming Business Markets and Economy

Even if the prices of property are affordable, yet rising year after year, your investment may be doomed if the location does not have a solid economy. Booming business markets and economies are the foundation that allows real estate to consistently grow, so avoid anything that even whispers “ghost town.” Low employment rates, thriving economies, and high median salaries are all important to consider.

Affordable Properties

More than any other quality, looking for properties you can afford to invest in is critical. Thankfully, Texas is home to some of the best, value-priced properties that can lead to massive ROI in your future. The vast amount of land being developed, and with rental properties built on them, throughout Texas makes it a sure bet for those that are just beginning to invest in rental properties as well.

Best Rental Markets:

1. Boerne, Kendall County

Median Property Price: $887,297

Price-to-Rent Ratio: 35.4%

Traditional Rental Income: $2,088.74

Kendall Country is home to many amazing cities for rental property investors to find profit in. Boerne is especially notable and has even made it onto many “best places to live” lists over the last few years. Its massively growing economy, consistent population growth, low employment rate, and suburban-style atmosphere make it especially fit for investors looking to provide rentals to working families.

2. Houston, Harris County

Median Property Price: $920,835

Price-to-Rent Ratio: 37.78%

Traditional Rental Income: $2,030.91

Houston is a massive city, and the size of the metro area makes many investors feel wary about tackling the location. Thankfully, if you want to invest in one of America’s major cities, Houston is the most accessible one to aim for. Retirees are especially keen on the city, so rental investors looking to snap up retiree-friendly properties should keep Houston in mind.

3. McKinney, Collin County

Median Property Price: $516,236

Price-to-Rent Ratio: 21.4%

Traditional Rental Income: $2,010.2

Money Magazine has featured McKinney as one of its best places to live over the last decade, and the medium-sized (for Texas) city is continuing to see massive growth with both its population and economy. The low crime rate, amazing education opportunities, and job variety in the locale make it fantastic for property investors looking to rent to young professionals and other middle-class individuals.

4. Tyler, Smith County

Median Property Price: $489,041

Price-to-Rent Ratio: 26.91%

Traditional Rental Income: $1,514.45

Tyler is one of the most charming cities in Texas, which is saying something given the astounding size of the state. It has amazing landscapes, a booming cultural scene, and an economy that makes it a hyper-safe investment for rental property investors. Given the number of people that are flocking to Tyler from Austin and other popular cities, Tyler provides one of the most exciting rental property investment opportunities on this list.

Real Estate Can Be Your Career

With these hot tips on locations and investment, Texas could become an oil well that will keep your bank account heavy for the rest of your life. As real estate and business show no signs of stopping in their insane growth over the next decade, now is an ideal time to get your feet wet. Armed with the knowledge in this guide, you can begin making passive income from rental properties and start living the dream life with confidence.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes