Side-by-side comparison of Amarillo, TX and Lubbock, TX — cap rates, rent, prices, and investment metrics.
Cash flow: Amarillo has the edge with an estimated cap rate of 4.66% compared to Lubbock's 4.38%. 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 $185,000 in Lubbock, while rents come in at $1,100/mo and $1,120/mo respectively.
Growth & appreciation: Lubbock is growing faster at 1.1% annually vs Amarillo's 0.7%. Lubbock leads on home value appreciation at 2.4% per year.
Costs & risk: Property taxes are 1.62% in Amarillo vs 1.65% in Lubbock. Vacancy rates of 6.1% and 6% are mixed — Lubbock has the tighter rental market.
Bottom line: Amarillo edges out Lubbock 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 Lubbock.