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Cap Rate Analysis: Round Rock, TX

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

Challenging for pure cash flow
Based on $385,000 median price and $1,720/mo median rent
Est. Cap Rate
2.56%
1% Rule
0.45%
Fails
GRM
18.7x
Price / Income
4.7x

Market Data

Median Home Price$385,000
Median Monthly Rent$1,720
Property Tax Rate1.74%
Population138,000
Population Growth3.1% / yr
Median Household Income$82,400
Vacancy Rate4.8%
Annual Appreciation3%

Cap Rate Calculator — Round Rock

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.74% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.00%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,697
net operating income
Gross Rent Multiplier
18.7x
High (>15)
1% Rule
0.45%
✗ Fails
Monthly Cash Flow
$641
before debt service
Annual Breakdown
Gross Rental Income$20,640
Less Vacancy−$991
Effective Income$19,649
Less Operating Expenses−$11,952
Net Operating Income$7,697

Cash-on-Cash Return — Round Rock

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

$
$96,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.85%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$107,800
$96,250 down + $11,550 closing
Monthly Mortgage
$1,882
on $289K loan
Monthly Cash Flow
$-884
after all expenses
Annual Cash Flow
$-10,613
before taxes
Cash Flow Breakdown
Monthly Rent$1,720
Less Expenses−$722
Less Mortgage−$1,882
Monthly Cash Flow$-884

Is Round Rock a Good Place to Invest in Rental Property?

Round Rock, TX has a population of 138,000 and has been growing at 3.1% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $385,000 paired with median rents of $1,720/mo produces an estimated cap rate of 2.56%.

Property taxes at 1.74% 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 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 4.7x, homes cost about 4.7 times the local median income of $82,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Round Rock is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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