Andrews County

Andrews County sits at a gross rent-to-price ratio of 5.53%, which translates to a 3.6% cap rate on a standard underwrite. At 6.85% financing, the math is straightforward and unfavorable for cash flow: a 20% down purchase produces an estimated monthly cash flow of negative $602 and a cash-on-cash return of negative 11.72%. This is not a market where you buy for income today. What it does offer is appreciation, and the numbers there are notable: home prices rose 7.12% year-over-year, and the appreciation score of 92 out of 100 places Andrews near the top of the spectrum among the counties this tool tracks. The median home price of $268,025 with an affordability index of 73 suggests the market is not yet priced out, but the rent base at $1,236 per month hasn't grown fast enough to close the yield gap.

The investor this market suits is an appreciation buyer with a long hold horizon and the balance sheet to carry negative cash flow, or a buyer who can structure the deal outside conventional financing to compress the payment. A cash-flow buyer should not be looking here at current prices and rates: negative $602 per month is a real carrying cost, not a rounding error. A value-add operator might find opportunity if they can force rent growth on underperforming units, but the median rent of $1,236 is the ceiling that market will bear until either local wages move or population growth creates supply pressure. The appreciation score of 92 is the single most compelling number in this data set, and it's the lens through which any investment thesis here has to be built.

Andrews County sits in the Permian Basin, and while the economic anchors field is not populated in this data set, the county's price trajectory and population of 18,362 in a small West Texas market are consistent with dynamics driven by energy sector activity. The 7.12% annual price appreciation in a county this size does not happen without a demand driver, and a Permian-adjacent economy is the logical explanation. Investors should validate current rig count activity and operator presence in the county before underwriting appreciation assumptions forward, because energy markets are cyclical and a softening in oil prices compresses both employment and rental demand simultaneously.

The tax and insurance carry in Andrews deserves a hard look on your underwrite. The combined monthly tax and insurance estimate is $514, using a state-average effective property tax rate of 1.80%. At 1.80%, Texas's rate is high enough to deserve its own line on your proforma, not a plug in a blended expense estimate. That $514 per month alone represents 41% of the gross rent, before mortgage, maintenance, or vacancy. Keep in mind this figure uses a state-average estimate per Tax Foundation 2024 data, and actual Andrews County or township rates may differ, so pull the county appraisal district's current rate before finalizing any numbers. Texas's lack of a state income tax does not offset a property tax rate this high when you're underwriting a rental with a sub-6% gross yield.

The concentration risk in a market of 18,362 people tied to a commodity-driven economy is real. A single employer exit or a multi-year oil price downturn can move vacancy rates and rents materially in a market this small. There is no cushion from economic diversification when a county's population fits in a mid-sized suburb. Regulatory risk is low by Texas standards generally, as the state does not allow rent control and landlord statutes are investor-friendly, but local market depth is thin enough that a few large landlords can set the effective rent ceiling. Investors should underwrite conservatively on vacancy assumptions and stress-test the model at lower rent levels before committing.

Comparing Andrews to its neighbors sharpens the picture. Wichita County offers a gross rent-to-price ratio of 8.67% against a median home price of $163,787 and a median rent of $1,183, making it a clear cash-flow alternative at a similar overall score of 68 versus Andrews's 66. Dawson County at $102,880 median and Donley County at $107,131 offer deep affordability but carry the same small-market risks at even lower price points, with no rent data provided. Matagorda County at $210,399 median and a 5.39% gross yield is structurally similar to Andrews but scores lower at 64 overall. The case for choosing Andrews over any of these neighbors comes down to one variable: the 92 appreciation score and 7.12% annual price growth. If an investor is building a portfolio strategy around equity accumulation in energy-adjacent West Texas markets and can service the negative cash flow from other income, Andrews is the strongest appreciating option in this peer group. If the mandate is monthly income, Wichita County's 8.67% gross yield at a $164,000 entry point is the more logical allocation.