Metropolitan Area

Houston, TX

Texas0
54
/100
Hold
#661 of 894 metros
Top 74% nationally for investing

Market Snapshot

$308,306
Median Home Price
21% above national median
$1,639/mo
Median Rent
18% above national median
6.38%
Rent-to-Price Ratio
Top 38% nationally
-$551
Est. Monthly Cash Flow
With 20% down at 6.9% rate

Price History

Median Home Price

Median Rent

Trend based on YoY growth rate. Source: Zillow ZHVI/ZORI

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20%
5%50%100%

Purchase

Purchase Price$308,306
Down Payment (20%)$61,661
Loan Amount$246,645
Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,639
Monthly P&I-$1,616
Est. Expenses (35%)-$574
Net Cash Flow-$551/mo
4.2%
Cap Rate (all cash)
-9.3%
Cash-on-Cash Return
6.38%
Rent-to-Price Ratio
Negative leverage: At 6.85% rates, borrowing costs exceed the 4.2% cap rate. All-cash buyers may see better returns.

* Based on metro-wide median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Individual counties and properties vary significantly.

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Score Breakdown

Overall Investment Score
54/100
54
Cash Flow(30%)
64/100

Based on 6.38% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)
40/100

Based on -2.0% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)
50/100

Based on 0.0% population growth. Growing areas indicate economic stability.

Affordability(20%)
64/100

Based on price relative to estimated local incomes.

Scores are calculated using real Zillow metro-level home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. This metro score represents area-wide averages; individual counties may vary significantly.

Investment Outlook

Strengths

  • +Low unemployment (0.0%)

Challenges

  • -Declining home values (-2.0% YoY)
  • -Negative cash flow at typical financing (-$551/mo)
  • -Negative leverage (cap rate 4.1% < mortgage rate 6.9%)

Counties in Houston, TX

County data is being compiled for this metro area.

Compare to Similar Metros

Metro AreaVerdict
Cadillac, MI
Cadillac, MI
74$235,398Est.BuyView
Hutchinson, KS
Hutchinson, KS
74$156,249$8266.34%BuyView
Charleston, IL
Charleston, IL
74$150,699$7876.26%BuyView
Atchison, KS
Atchison, KS
74$185,434Est.BuyView
Cortland, NY
Cortland, NY
74$202,961$1,3087.73%BuyView
Current
Houston, TX
54$308,306$1,6396.38%Hold

Rent vs buy in this metro

Rent vs buy in Houston, TXMedian $277,740 · rent $1,584/mo

The Bottom Line

HoldHouston, TX is a neutral market. Consider house hacking or targeting below-market deals in specific counties.

The Houston, TX metro area scores 54/100, ranking #661 of 894 US metros (top 74%). The 6.38% rent-to-price ratio indicates moderate cash flow potential. Current metro-wide averages make traditional buy-and-hold investing challenging. Consider house hacking, value-add strategies, or drilling down to specific counties.

Monthly Cash Flow
$-551/mo
Cap Rate
4.1%
Cash-on-Cash
-10.7%

Ready to Invest in Houston, TX?

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