Rental Property Underwriting in Houston, TX
Best big-city cash flow in Texas, offset by tax and flood risk.
Typical SFR price
$280,000 – $380,000
3-bed rent (monthly)
$1,850 – $2,400
Effective property-tax rate
2.10% – 2.80%
Insurance (annual, ~$300k SFR)
$2,200 – $3,500
Gross rent-to-price (monthly)
0.60% – 0.75%
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 Houston different
- Flood-zone verification is not optional — Harris County has 500-year-flood exposure.
- MUD tax districts add 0.5-1.5% on top of base rates — read the tax certificate.
- Energy-sector employment cycles affect Class B rents on 3-5 year swings.
Quick worked example
Mid-range Houston deal: $330,000 purchase, $2,125/mo rent → gross yield 7.73%. 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 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.