Cash Flow Investing in Dallas, TX
Data-driven cash flow analysis for Dallas, TX — score breakdown, key investment metrics, and how it compares to other markets.
Last updated: May 2026
Score Breakdown
Key Metrics for Cash Flow
Cap Rate
5.7%
Moderate
Rent-to-Price
0.50%
Below 1% rule
Vacancy Rate
7.8%
Healthy
Property Tax
1.93%
Above average
Cash Flow 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
| Rank | City | Cash Flow Score | Cap Rate | Median Price |
|---|---|---|---|---|
| #37 | Portland, OR | 3.8 | 4.2% | $480,000 |
| #38 | Houston, TX | 3.7 | 6.3% | $265,000 |
| #39 | Chicago, IL | 3.5 | 6.0% | $275,000 |
| #40 | Dallas, TX | 3.5 | 5.7% | $340,000 |
| #41 | Las Vegas, NV | 3.4 | 4.8% | $380,000 |
| #42 | Austin, TX | 3.4 | 4.3% | $450,000 |
| #43 | Seattle, WA | 3.4 | 3.8% | $720,000 |
Showing markets ranked near Dallas for this strategy.
Quick Math: Estimated Annual Return
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 cash flow score for Dallas, TX?
Dallas, TX scores 3.5 out of 10 on our cash flow score, ranking #40 out of 52 markets we track. Weighted composite: rent-to-price ratio (30%), cap rate (30%), low vacancy (20%), low property taxes (20%). Scale 0–10.
Is Dallas a good city for cash flow investing?
Dallas, TX ranks #40 for cash flow investing with a score of 3.5/10. While not a top-ranked market for this strategy, it may have strengths in other investing approaches.
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 cash flow markets?
Among our 52 tracked markets, Dallas, TX ranks #40 for cash flow investing. Other markets may be stronger for this particular strategy, though it may excel in different approaches.
Does Dallas meet the 1% rule?
Dallas, TX has a rent-to-price ratio of 0.50%, which falls significantly below the 1% rule. However, the 1% rule is a rough guideline — individual deals can still cash flow well in this market.
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.
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