Houston suburbs compared for rental investors
Entry-level price, rent, yield, lender DSCR and cash flow in 15 Houston-area cities, the same method as our monthly Investor Market Update. Updated October 2026.
By lender DSCR, Baytown leads this group at 0.97 ($1,650 rent on a $191,000 entry-level home, 10.4% gross yield). At today's rates no entry-level rental in these cities cash flows with an 80% DSCR loan. The last column is the purchase price that reaches a 1.25 DSCR, and the gap to today's prices is why buying below market matters.
| City | Market | Entry price | Rent | Gross yield | DSCR | Cash flow / mo | Tax rate | Price for 1.25 DSCR |
|---|---|---|---|---|---|---|---|---|
| Baytown | Seller's market | $191,000 | $1,650 | 10.4% | 0.97 | −$475 | 2.58% | $147,738 |
| League City | Balanced | $270,000 | $2,080 | 9.2% | 0.94 | −$664 | 1.67% | $202,137 |
| Humble | Balanced | $215,000 | $1,750 | 9.8% | 0.92 | −$610 | 2.52% | $156,640 |
| Missouri City | Balanced | $235,000 | $1,895 | 9.7% | 0.91 | −$684 | 2.39% | $168,263 |
| Spring | Balanced | $221,000 | $1,750 | 9.5% | 0.91 | −$636 | 2.35% | $158,622 |
| Hockley | Balanced | $215,000 | $1,715 | 9.6% | 0.89 | −$661 | 2.57% | $150,716 |
| Conroe | Balanced | $223,000 | $1,650 | 8.9% | 0.87 | −$683 | 2.08% | $152,509 |
| Magnolia | Balanced | $247,500 | $1,720 | 8.3% | 0.86 | −$717 | 1.58% | $169,551 |
| Katy | Balanced | $248,000 | $1,845 | 8.9% | 0.85 | −$802 | 2.29% | $166,327 |
| Sugar Land | Balanced | $270,000 | $1,900 | 8.4% | 0.83 | −$880 | 1.96% | $176,433 |
| Pearland | Seller's market | $290,050 | $2,095 | 8.7% | 0.83 | −$989 | 2.36% | $188,713 |
| Cypress | Balanced | $260,000 | $1,900 | 8.8% | 0.81 | −$931 | 2.52% | $165,537 |
| Tomball | Balanced | $259,000 | $1,815 | 8.4% | 0.80 | −$938 | 2.44% | $162,401 |
| Richmond | Buyer's market | $275,000 | $1,925 | 8.4% | 0.79 | −$1,002 | 2.41% | $171,429 |
| Fulshear | Balanced | $345,000 | $1,995 | 6.9% | 0.63 | −$1,670 | 2.65% | $167,952 |
Entry-level = the 25th-percentile 3-bedroom resale and 3-bedroom house lease, last 12 months, by postal city. DSCR loan: DSCR 30-yr fixed, 80% of price at 7.875% (Blink Lending quote, 2026-10-14). Costs: median MLS tax rate, insurance 0.9% of price (1.5% where a quarter of homes sit in a flood zone), HOA where most homes have one, and vacancy 8%, management 8%, repairs 5%, capex reserve 5% of rent. Based on information from the Houston Association of REALTORS® MLS; not guaranteed accurate. Not a guarantee of returns.
Rates: 30-year fixed average 7.40% (2026-10-15), 6.27% a year earlier; 15-year 6.71% (Freddie Mac via FRED). Investor DSCR loan quote 7.875% (Blink Lending, 2026-10-14).
Area guides
The full monthly report for each city: market temperature, prices, rents, investor math, risk, ZIP codes and subdivisions.
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