Best places to buy rental properties in Texas

March 2, 2022
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Investing in Texas

The Lone Star State is the state with the second highest GDP ($1.99 Trillion) after California. With a thriving economy, a constitutionally guaranteed prohibition on individual income tax, and an ecosystem attracting technology companies and skilled talent, it's certainly a place with opportunity. The Nophin team crunched the numbers and found five of the best places to invest in Texas real estate.

Statewide vacancy rates

TX Rental Vacancy Rate via Federal Reserve Bank of St. Louis

Houston, TX

Houston is the largest city in texas and is home to NASA's Johnson Space Center. The Apollo Project, which brought the first astronauts to the moon, launched here.

  • Population: 2,304,580
  • Median household income: $53,600
  • Median 1-bedroom monthly rent: $1,310
  • Median listing home price: $350,000

Dallas, TX

Dallas is the third largest city in Texas and hosts the State Fair of Texas each year.

  • Population: 1,304,379
  • Median household income: $54,747
  • Median 1-bedroom monthly rent: $1,465
  • Median listing home price: $535,000

San Antonio, TX

San Antonio is the second largest city in Texas and the seventh largest in the US. Tourists come to San Antonio to see the Alamo and amusement parks in the area.

  • Population: 1,434,625
  • Median household income: $53,420
  • Median 1-bedroom monthly rent: $1,115
  • Median listing home price: $310,000

Austin, TX

Austin is the state capital of Texas and has a growing technology scene. Companies like Tesla, Dell, and Oracle all have their headquarters here.

  • Population: 961,855
  • Median household income: $75,752
  • Median 1-bedroom monthly rent: $1,632
  • Median listing home price: $659,000

Waco, TX

Waco is a city halfway between Dallas and Austin. According to PolicyGenius, Waco also has one of the lowest rental vacancy rates in the state.

  • Population: 138,486
  • Median household income: $40,349
  • Median 1-bedroom monthly rent: $900
  • Median listing home price: $260,000

Nophin is landlord banking and software for rental properties

With FDIC-insured bank accounts and cards that seamlessly integrate with easy-to-use software, Nophin helps landlords increase returns and automate rental property finances. Check out what we offer on the Nophin homepage!


To help us determine the five best cities in all states, the Nophin team used data from several sources including the 2020 United States Census, the Department of Housing & Urban Development, Federal Reserve Economic Data (FRED), the National Association of REALTORS®, Zumper, internal data, and other reputable sources.

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Please note: Nothing above should be construed as legal, investment, tax, nor financial advice. This content is for informational purposes only. Consult a lawyer and/or an accountant if the above is right for your personal situation.

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