Investing in Magnolia, TX
Rents, prices, taxes and cash flow for Magnolia rental property, from 2,242 home sales and 787 house leases on HAR MLS. Updated October 2026.
Is Magnolia, TX a good place to buy a rental property in 2026?
At typical prices a financed rental in Magnolia does not cash flow right now. An entry-level 3-bed house ($247,500, the 25th-percentile sale) rents for about $1,720 a month, a 8.3% gross yield and a 0.86 lender DSCR. With an 80% DSCR loan, estimated cash flow is −$717 a month after the loan, taxes, insurance, vacancy, management and repairs. A 1.25 DSCR, what most DSCR lenders want, needs a purchase at or under $169,551; 3% of last year's 3-bed sales closed that low on the MLS. That is why investors here buy below market: off-market, distressed or needing work.
Magnolia investor market report
The same sections as our monthly Investor Market Update, for Magnolia: resale houses closed 2025-10-18 to 2026-10-18, HAR MLS.
▲▼ = change vs the 12 months before (2024-10-18 to 2025-10-18). Resale single-family houses, new construction excluded.
960 single-family homes active, 217 pending, against 188 closings a month (new builds included). Under 4 months favors sellers, over 6 favors buyers.
Loan: DSCR 30-yr fixed quote from Blink Lending (2026-10-14), 80% of price, 30 years; cash in = down payment + 3% closing costs ($56,925). Tax at the city's median MLS tax rate, insurance 0.9% of price a year, HOA where most homes have one, and vacancy 8%, management 8%, repairs 5%, capex reserve 5% of rent. An estimate, not a promise.
- In 100-year flood zone
- 2% of resale homes sold
- Flood claims, 10 years
- 809 FEMA NFIP, city ZIP codes
- Property tax rate
- 1.58% median on MLS, incl. MUD/PID
- HOA
- $500/yr 80% of homes · check lease rules
- Insurance (estimate)
- 0.9% of value ≈ $186/mo
- Cash buyers
- 26% of 133 sales reporting terms
- Days to lease
- 31 days ▲ 5 days
- Rental supply
- 3.1 mo 218 for lease now
- Prices down 3.5% vs last year, days on market +3. Balanced at 5.1 months. 76% of sellers ended below their original price, so there is room to negotiate on stale listings.
- An entry-level 3-bed house ($248K, ~$1,720/mo) is a 0.86 lender DSCR. A 1.25 needs a buy at or under $170K, and 3% of last year's 3-bed sales closed there.
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).
The math works below market. That is where our deals are.
We source off-market and distressed houses in Magnolia and across Houston, and send them to investors whose buy box fits, with our numbers attached. Free account, no obligation.
Magnolia ZIP codes compared
3-bedroom resales and 3-bedroom house leases by ZIP code, last 12 months. Flood claims are FEMA flood insurance claims in the last 10 years.
| ZIP | Median price | Median rent | Gross yield | Sales | Leases | Flood claims (10 yr) |
|---|---|---|---|---|---|---|
| 77354 | $305,000 | $1,920 | 7.6% | 214 | 281 | 355 |
| 77355 | $340,000 | $1,750 | 6.2% | 160 | 94 | 313 |
Magnolia subdivisions with the most rental activity
Subdivisions with at least 6 sales and 6 house leases in the last 12 months. All home sizes, so compare like with like before you offer.
| Subdivision | Median price | Median rent | Gross yield | Sales | Leases |
|---|---|---|---|---|---|
| Magnolia Ridge | $265,000 | $1,875 | 8.5% | 23 | 40 |
| Northgrove | $442,000 | $3,000 | 8.1% | 28 | 14 |
| Woodland Oaks | $315,000 | $2,100 | 8.0% | 20 | 14 |
| Lakes Of Magnolia | $267,500 | $1,800 | 8.1% | 15 | 16 |
| Audubon | $349,000 | $2,650 | 9.1% | 9 | 15 |
| Magnolia Ridge Forest | $250,000 | $1,800 | 8.6% | 9 | 13 |
| Williams Trace | $226,500 | $1,700 | 9.0% | 9 | 8 |
| Mill Creek Estates | $287,000 | $2,100 | 8.8% | 6 | 11 |
| Mostyn Springs | $247,500 | $2,000 | 9.7% | 6 | 9 |
Magnolia investor questions
How much does a house rent for in Magnolia, TX?
What do homes sell for in Magnolia, TX?
What are property taxes in Magnolia, TX?
Is Magnolia a buyer's or seller's market right now?
Which ZIP code in Magnolia has the best rent-to-price?
Does Magnolia flood?
Compare other Houston areas
Also for Magnolia: what homes sell for · buying a home.
Sources: HAR MLS closed sales and leases (single-family houses); Freddie Mac 30-year average rate via FRED; FEMA National Flood Insurance Program claims (OpenFEMA). Data as of 2026-10-20. Medians of single-family homes and house leases in the Magnolia postal city (Montgomery County). Based on information from the Houston Association of REALTORS® MLS; not guaranteed accurate. Nothing here is a guarantee of returns. Verify every number with your own due diligence.
Want deals in Magnolia?
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