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Cap Rate Analysis: Brownsville, TX

Investment metrics, interactive calculators, and data-driven analysis for Brownsville rental properties.

Moderate — source deals carefully
Based on $155,000 median price and $950/mo median rent
Est. Cap Rate
4.44%
1% Rule
0.61%
Fails
GRM
13.6x
Price / Income
4.0x

Market Data

Median Home Price$155,000
Median Monthly Rent$950
Property Tax Rate1.64%
Population189,000
Population Growth0.8% / yr
Median Household Income$38,400
Vacancy Rate6.5%
Annual Appreciation2%

Cap Rate Calculator — Brownsville

Pre-filled with Brownsville medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.64% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.51%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$5,439
net operating income
Gross Rent Multiplier
13.6x
Good (<15)
1% Rule
0.61%
✗ Fails
Monthly Cash Flow
$453
before debt service
Annual Breakdown
Gross Rental Income$11,400
Less Vacancy−$741
Effective Income$10,659
Less Operating Expenses−$5,220
Net Operating Income$5,439

Cash-on-Cash Return — Brownsville

Factor in financing to see your actual return on invested capital in Brownsville.

$
$38,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.72%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$43,400
$38,750 down + $4,650 closing
Monthly Mortgage
$758
on $116K loan
Monthly Cash Flow
$-207
after all expenses
Annual Cash Flow
$-2,482
before taxes
Cash Flow Breakdown
Monthly Rent$950
Less Expenses−$399
Less Mortgage−$758
Monthly Cash Flow$-207

Is Brownsville a Good Place to Invest in Rental Property?

Brownsville, TX has a population of 189,000 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $155,000 paired with median rents of $950/mo produces an estimated cap rate of 4.44%.

Property taxes at 1.64% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 6.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.0x, homes cost about 4.0 times the local median income of $38,400. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Brownsville presents moderate opportunities. Cap rates near 4.44% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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