Rental Property Underwriting in Dallas, TX
High taxes, no state income tax, strong job-driven demand.
Typical SFR price
$380,000 – $480,000
3-bed rent (monthly)
$2,000 – $2,600
Effective property-tax rate
2.00% – 2.60%
Insurance (annual, ~$300k SFR)
$1,800 – $2,800
Gross rent-to-price (monthly)
0.52% – 0.65%
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 Dallas different
- Property tax is the killer line — always underwrite at post-sale assessed value.
- Homestead cap does not apply — expect full market-value reassessment.
- Hail is a real insurance risk; deductibles typically 1-2% of dwelling value.
Quick worked example
Mid-range Dallas deal: $430,000 purchase, $2,300/mo rent → gross yield 6.42%. 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 Houston, TX →Rental underwriting in Austin, 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.