Market Analysis

Houston, TX Multifamily Market

Cap rates, rent trends, and underwriting benchmarks for Houston apartment investors.

6.0%
Avg Cap Rate
5.2% – 7.2%
Cap Rate Range
1.32x
Avg DSCR
$140,000
Price / Unit
$1,200
Avg Rent / Unit
7.8%
Vacancy Rate
+2.0%
YoY Rent Growth
2,320,000
Population

Market Trend

Energy sector stabilization supports the broader economy. Houston's affordability and job diversity attract steady in-migration. The Inner Loop and Medical Center submarkets command premium rents, while suburban properties offer higher yields.

Lender Notes

Flood zone designation impacts insurance and underwriting. Lenders require 1.25x DSCR. Property insurance costs are among the highest in the country.

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