Cap Rate in Dallas, TX

2026 Market Overview for Real Estate Investors

Avg Cap Rate

5.7%

#31 of 50 markets

Median Home Price

$340,000

Purchase price

Median Monthly Rent

$1,700

$20,400/yr gross

Rent-to-Price Ratio

0.50%

Moderate

Cap Rate Rating

Moderate

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

Market Snapshot

Population	1,304,379
5-Year Population Growth	+8.0%
Median Household Income	$60,000
Vacancy Rate	7.2%
Property Tax Rate	1.93%($6,562/yr)

Investor Takeaway

Dallas is a corporate relocation magnet with massive job growth, but home prices have risen faster than rents in recent years. Suburban markets like Mesquite and Garland offer better cap rates.

Quick Math

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

Annual Gross Rent$20,400

Less Vacancy (7.2%)($1,469)

Less Property Tax (1.93%)($6,562)

Less Est. Insurance + Maintenance($6,800)

Estimated NOI$5,569

Implied Cap Rate1.6%

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