Cap Rate in Austin, TX

2026 Market Overview for Real Estate Investors

Avg Cap Rate

4.3%

#45 of 50 markets

Median Home Price

$450,000

Purchase price

Median Monthly Rent

$1,750

$21,000/yr gross

Rent-to-Price Ratio

0.39%

Below 1% rule

Cap Rate Rating

Moderate

Typical for stable markets with moderate growth potential. Balanced risk-return profile.

Market Snapshot

Population	979,882
5-Year Population Growth	+15.0%
Median Household Income	$75,000
Vacancy Rate	7.5%
Property Tax Rate	1.82%($8,190/yr)

Investor Takeaway

Austin tech-driven growth is real, but oversupply in the multifamily market has pushed vacancy up and rents down from 2023 peaks. Patient investors may find value as the market absorbs new inventory.

Quick Math

Estimated annual numbers for a median-priced property in Austin, TX before financing:

Annual Gross Rent$21,000

Less Vacancy (7.5%)($1,575)

Less Property Tax (1.82%)($8,190)

Less Est. Insurance + Maintenance($9,000)

Estimated NOI$2,235

Implied Cap Rate0.5%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.