Texas Rental Property Calculator & Real Estate ROI

Investor guide

What rental investors should know about Texas

Texas is popular with rental investors because there's no state income tax, but property taxes and insurance are two of the highest in the country. Your rent has to cover a lot more carrying cost here than in a low-tax state, so run the ROI carefully before you buy.

Key Texas costs for landlords

• Property tax: Effective property tax rates run about 1.6–1.8% of market value — often the single largest expense in your Cap Rate calculation. Non-homestead rentals don't get the homestead cap.
• Insurance: Windstorm and hail coverage push landlord insurance well above the national average, especially along the Gulf Coast and in DFW hail country. Budget $1,800–$3,000+ per year on a typical single-family rental.
• Landlord rules: Texas is generally landlord-friendly with fast eviction timelines (about 3 weeks once filed) and no statewide rent control, which helps cash flow predictability.

Frequently asked questions (Texas real estate)

What is the real estate transfer tax rate in Texas?

Texas is one of the few states that charges $0 in state real estate transfer taxes. The state constitution strictly prohibits the imposition of a joint transfer tax on real estate sales, keeping your transaction fees significantly lower than states like New York or California.

Who pays for title insurance and escrow fees in Texas?

By Texas real estate custom, the seller traditionally purchases and pays for the Owner's Title Insurance Policy, while the buyer pays for their lender's title policy. Escrow and settlement fees are typically split 50/50 between the buyer and the seller.

How do the new 2026 commission rules affect Texas home sellers?

Following the historic NAR settlement, real estate commissions are decoupled. Texas sellers no longer blindly offer a fixed 6% blanket commission on the MLS. Listing agent fees and buyer agent concessions are negotiated separately. Sumline separates these inputs so you can accurately protect your equity.

Agents: turn this estimate into a client-ready seller proceeds report with your name and brokerage on it.