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Amarillo vs Laredo for Rental Property Investing

Side-by-side comparison of Amarillo, TX and Laredo, TX — cap rates, rent, prices, and investment metrics.

Amarillo wins 6–1 across key metrics
Amarillo leads on cash flow (4.66% vs 4.05% cap rate) · Laredo leads on population growth
Metric
Amarillo, TX
Laredo, TX
Est. Cap Rate
4.66%
4.05%
Median Home Price
$175,000
$175,000
Median Monthly Rent
$1,100
$1,020
1% Rule
0.63%
0.58%
GRM
13.3x
14.3x
Price / Income
3.4x
4.1x
Property Tax Rate
1.62%
1.7%
Vacancy Rate
6.1%
6.3%
Population Growth
0.7% / yr
1% / yr
Annual Appreciation
2.2%
2.1%
Population
200,810
261,776
Median Income
$51,800
$42,500

Amarillo vs Laredo: Which Is Better for Investors?

Cash flow: Amarillo has the edge with an estimated cap rate of 4.66% compared to Laredo's 4.05%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $175,000 in Amarillo vs $175,000 in Laredo, while rents come in at $1,100/mo and $1,020/mo respectively.

Growth & appreciation: Laredo is growing faster at 1% annually vs Amarillo's 0.7%. Amarillo leads on home value appreciation at 2.2% per year.

Costs & risk: Property taxes are 1.62% in Amarillo vs 1.7% in Laredo. Vacancy rates of 6.1% and 6.3% are mixed — Amarillo has the tighter rental market.

Bottom line: Amarillo edges out Laredo on most key metrics. While cap rates are moderate at 4.66%, Amarillo's overall profile is stronger. Use our free calculators to model specific deals in Amarillo or Laredo.

Amarillo, TX
4.66% cap rate · $175,000 median · $1,100/mo
Full analysis →
Laredo, TX
4.05% cap rate · $175,000 median · $1,020/mo
Full analysis →
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