Taylor County

Taylor County sits at a median home price of $228,744 against a median rent of $1,994, producing a rent-to-price ratio of 1.05% monthly, or roughly 10.5% annualized. That puts it squarely in cash-flow territory. The modeled cap rate comes in at 6.8%, which clears the bar most buy-and-hold investors set for unlevered returns, and the gross yield math confirms this is not an appreciation-first market masquerading as a cash-flow play. Home prices are up 9.9% year-over-year, so there is real price movement here, but the yield is high enough that you are not buying growth at the expense of current income. The affordability index of 81 means the county is accessible to a wide tenant pool relative to incomes, which matters for vacancy risk and rent collection stability.

The cash-flow score of 100 and a national ranking of 13th out of 1,000 counties tells you where Taylor fits in the universe of buy-and-hold markets. At a $45,749 down payment (20%), the modeled monthly mortgage is $1,199 at 6.85%, estimated expenses run $698, and cash flow comes in at roughly $98 per month. That is thin on a nominal basis, and the cash-on-cash return of 2.24% reflects the current rate environment more than it reflects any problem with the market itself. The 6.8% cap rate is the more useful number here: it tells you what the asset yields on an unlevered basis, and it holds up well against most comparable markets. If rates compress, the levered return improves meaningfully without any change in the underlying asset quality. The appreciation score of 80 and 9.9% YoY price growth suggest this market has legitimate upside beyond the current yield, which is the kind of dual-return profile that justifies holding through rate cycles.

The investor who fits Taylor best is someone prioritizing cash-flow yield without entirely sacrificing price appreciation potential. A pure appreciation buyer can find higher-growth metros, but they will pay for it in compressed yields. A pure cash-flow buyer may prefer smaller, lower-priced West Texas markets, but they give up population scale and price trajectory. Taylor at 143,029 residents, a top-5 ranking in Texas out of 243 counties, and a 98th national percentile overall score is the kind of market where a value-add operator can also do well: the affordability index of 81 means there is room to push rents on improved units without pricing out the local workforce.

On carry costs, the $438 monthly tax and insurance figure is not trivial and deserves a dedicated line in your underwrite. At a state-average effective property tax rate of 1.8%, Texas is a high-tax state for real property, and that rate is high enough to deserve its own line on your underwrite. The modeled annual property tax alone is $4,117 on a $228,744 asset. That is not a deal-breaker at a 6.8% cap rate, but investors underwriting Taylor for the first time sometimes anchor to income and mortgage payment and undercount the tax drag. Note that 1.8% is a state-average estimate per Tax Foundation 2024 data, and actual Taylor County or township-level rates may differ, so pull the county assessor numbers before finalizing any acquisition model.

The stability score of 50 is the single flag worth examining. The data does not specify the underlying drivers, but a mid-range stability score on a market with strong cash-flow and appreciation scores typically points to concentration risk, whether that means employer concentration, a smaller or cyclically sensitive economic base, or demographic factors tied to a single industry. Investors should verify the depth of the local employer base and tenant demand sources before scaling a portfolio here. Single-asset exposure to a market with a stability score of 50 is manageable; a concentrated multi-property position warrants more diligence on what drives local rental demand.

Against its neighbors, Taylor's value proposition is clear. Wichita County, the only neighbor with full rent and price data, shows a median home price of $163,787 and a rent-to-price ratio of 0.87% monthly against Taylor's 1.05%, and Wichita scores 68 overall compared to Taylor's 79. Stonewall and Cottle counties have dramatically lower median prices ($91,350 and $65,066 respectively) and higher overall scores (82 and 68), but the low price points typically come with thin tenant pools, limited liquidity, and management challenges that do not show up in a score. Andrews and Callahan counties sit near Taylor's price range at $244,485 and $220,841 but score 75 overall, four points below Taylor. Choose Taylor over its neighbors when you want a market with genuine scale, a deep enough tenant pool to absorb vacancy, and a yield that holds up under a real expense load, rather than chasing a lower price point into markets where the numbers look clean partly because transaction volume is thin.