Houston, TX variant. This is a Houston, TX-specific version of the Rental Yield Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Rental Yield Calculator.
Houston's gross rental yield - annual rent ÷ property price - is about 7.6%, based on $1,700/month rent on a $270,000 median home.
Rental yield in Houston
Gross yield = ($1,700 × 12) ÷ $270,000 = 7.6%. Net yield subtracts property tax (2.31%), insurance, vacancy, and maintenance.
High-price metros tend to show lower yields (price outruns rent); affordable metros often yield more. Houston's yield is attractive for cash-flow investors.
About Houston, TX
Houston residents pay no state or city income tax, since Texas does not impose a personal income tax, leaving more take-home pay relative to many large cities.
Houston has comparatively affordable home prices and rents, supported by ample land and the city's notable lack of formal zoning laws.
Houston's economy is heavily tied to the energy industry, alongside major medical, aerospace, and shipping sectors.
Worked example: Houston yield
Annual rent $20,400 ÷ price $270,000 = 7.6% gross. After 2.31% property tax and ~1% maintenance, net yield is meaningfully lower.
Quick reference
- Median home value: $270,000
- Median rent: $1,700/mo
- Median household income: $62,894
- Local sales tax: 8.25%
- Effective property tax rate: 2.31%
- Cost of living index: 97 (US avg = 100)
Frequently Asked Questions
What is a good rental yield?
Many investors target 6-8% gross; Houston runs about 7.6%.
How is rental yield calculated?
Gross yield = annual rent ÷ purchase price. Net yield also subtracts taxes, insurance, vacancy, and upkeep.