Rental Property Underwriting in Austin, TX
Appreciation-driven; near-impossible to cash-flow with 25% down.
Typical SFR price
$500,000 – $650,000
3-bed rent (monthly)
$2,400 – $3,000
Effective property-tax rate
1.90% – 2.40%
Insurance (annual, ~$300k SFR)
$1,800 – $2,800
Gross rent-to-price (monthly)
0.42% – 0.52%
Landlord-tenant climate
landlord-friendly
Ranges compiled from Zillow, Redfin, and county assessor public data. Last reviewed 2025-10. Use as directional inputs, not appraisals.
What makes underwriting in Austin different
- Rent growth has stalled after 2021-2022 surge — model 0-2% rent growth.
- New multifamily supply is high; SFR benefits from that saturation less than expected.
- Consider larger down payments (35-40%) to make debt service work.
Quick worked example
Mid-range Austin deal: $575,000 purchase, $2,700/mo rent → gross yield 5.63%. Whether that cash-flows depends on your rate, down payment, taxes at post-sale assessment, and insurance quote — not the metro average.
Other US markets we cover
Rental underwriting in Atlanta, GA →Rental underwriting in Charlotte, NC →Rental underwriting in Raleigh, NC →Rental underwriting in Tampa, FL →Rental underwriting in Orlando, FL →Rental underwriting in Jacksonville, FL →Rental underwriting in Phoenix, AZ →Rental underwriting in Las Vegas, NV →Rental underwriting in Dallas, TX →Rental underwriting in Houston, TX →Rental underwriting in San Antonio, TX →Rental underwriting in Columbus, OH →
Educational content only, not investment or legal advice. Verify all numbers with local professionals before making an offer.