Appreciation Investing in Dallas, TX

Appreciation Score: 6.0/10Ranked #10 of 52 markets

Data-driven appreciation analysis for Dallas, TX — score breakdown, key investment metrics, and how it compares to other markets.

Last updated: May 2026

Score Breakdown

Appreciation Score:6.0
Population Growth(40%)
+8.0%6.0
Median Household Income(25%)
$74,1494.9
Low Vacancy(20%)
7.8%5.3
Metro Size (Demand)(15%)
2,603,8168.6

Key Metrics for Appreciation

Pop. Growth

+8.0%

Strong

Median Income

$74,149

Household income

Vacancy Rate

7.8%

Moderate supply

Population

2.6M

Metro demand indicator

Appreciation Investment Thesis

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.

How Dallas Compares

RankCityAppreciation ScoreCap RateMedian Price
#7Charlotte, NC6.55.6%$340,000
#8San Diego, CA6.33.5%$820,000
#9Sacramento, CA6.24.7%$450,000
#10Dallas, TX6.05.7%$340,000
#11Salt Lake City, UT5.85.4%$420,000
#12Las Vegas, NV5.74.8%$380,000
#13Atlanta, GA5.65.9%$320,000

Showing markets ranked near Dallas for this strategy.

Quick Math: Estimated Annual Return

Annual Gross Rent ($1,700/mo)$20,400
Less: Vacancy (7.8%)-$1,591
Less: Property Tax (1.93%)-$6,562
Less: Insurance (~0.5%)-$1,700
Less: Maintenance (~1.5%)-$5,100
Estimated NOI$5,447
Implied Cap Rate1.6%

Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.

Frequently Asked Questions

What is the appreciation score for Dallas, TX?

Dallas, TX scores 6.0 out of 10 on our appreciation score, ranking #10 out of 52 markets we track. Weighted composite: population growth (40%), median household income (25%), low vacancy (20%), metro size/demand (15%). Scale 0–10.

Is Dallas a good city for appreciation investing?

Yes — Dallas, TX ranks in the top 10 for appreciation investing with a score of 6.0/10. Key factors include a median home price of $340,000, cap rate of 5.7%, and positive population growth of +8.0%.

What is the average cap rate in Dallas?

The average cap rate in Dallas, TX is 5.7%. The median home price is $340,000 with a median monthly rent of $1,700, resulting in a rent-to-price ratio of 0.50%.

What are the property taxes in Dallas?

The effective property tax rate in Dallas, TX is 1.93%. On a $340,000 property, that translates to approximately $6,562 per year in property taxes.

How does Dallas compare to other appreciation markets?

Among our 52 tracked markets, Dallas, TX ranks #10 for appreciation investing. It performs above average for this strategy.

What is driving population growth in Dallas?

Dallas, TX has a 5-year population growth rate of +8.0% and a median household income of $74,149. Strong job growth and migration trends are fueling above-average population increases, which typically correlates with sustained home price appreciation.

Run Your Own Numbers for Dallas

Use our free calculators pre-filled with Dallas, TX market data, or adjust the numbers for your specific deal.