The BRRRR method works wherever rent-to-value ratios are high, and struggles wherever they are not. Texas pairs a typical home value near $296,000 with median rents around $1,475 per month and an effective property tax rate of 1.31% — three numbers that together decide whether a buy-rehab-rent-refinance deal can return capital. Below, the tool is preloaded with a Texas deal built from those figures, and the worked example shows exactly how each output is calculated.
The Texas market at a glance
| Typical home valueZillow typical home value — the anchor for ARV assumptions | $296,000 |
|---|---|
| Median monthly rentGross rent-to-value ratio of 6.0% | $1,475 |
| Effective property tax rate$3,880 per year on a median-value home | 1.31% |
| Typical landlord insuranceAnnual premium for a rented single-family home | $2,600 |
| Example ARV (90% of median)BRRRR candidates typically appraise below the median | $265,000 |
Home values: Zillow, September 2026. Income, rent, and property tax: U.S. Census Bureau ACS, 2024. Insurance is an estimate. Sources · How every state compares
A BRRRR deal on Texas numbers
| Purchase price (65% of ARV) | $170,000 |
|---|---|
| Rehab budget | $40,000 |
| Closing + holding costs | $12,350 |
| All-in cost | $222,350 |
| After-repair value | $265,000 |
| Refinance proceeds (75% LTV, net of closing) | $193,781 |
| Monthly rent | $2,225 |
| Mortgage payment (P&I) | $1,306 |
| Net monthly cash flowHeadline result | -$98 |
| Cash left in the dealHeadline result | $28,569 |
| Year-one cash-on-cash return | -4.1% |
| DSCR | 0.92 |
Texas-specific costs and rules
Property taxes in Texas
Texas has no state income tax and one of the highest effective property tax rates in the US, levied by county, school district, and special districts; the homestead exemption applies only to a primary residence. On the example ARV of $265,000, that rate works out to $3,470 per year — $289 every month that rent must cover before anything else reaches you.
Insurance and physical risk in Texas
Budget roughly $2,600 per year for a landlord policy. Hurricane and flood exposure dominates along the Gulf and South Atlantic coasts: windstorm deductibles, separate wind pools, and NFIP flood policies can add thousands per year, and lender-required coverage tightens within a few miles of the shoreline. Get an actual quote before you write an offer — premiums on the same house can swing by thousands.
Landlord rules in Texas
No statewide rent control. Security deposits must be returned within 30 days of the end of the tenancy.
How to run your own Texas BRRRR analysis
- The tool above loads with a Texas example built on statewide data. Replace the purchase price with your actual offer — the rehab budget, closing costs, and holding costs will not update for you.
- Set the ARV from three comparable sold renovations within a mile and built in the last 12 months, not from the median value used here.
- Swap the rent for a comps-based number: an arm's-length three-bedroom single-family rental within a mile, rented in the last 90 days.
- Re-run property taxes from the county assessor's bill rather than the statewide 1.31% average — local millage inside Texas varies far more than the state figure suggests.
- Watch two cards: cash left in the deal must stay positive for the refinance to return capital, and cash flow must stay positive for the deal to hold without subsidizing it.
Methodology
All-in cost is purchase price + rehab + purchase closing costs + (holding cost per month × holding months). Refinance proceeds are ARV × 75% LTV, minus2.5% closing. Cash left in the deal is all-in cost minus net proceeds; cash flow is rent minus operating expenses (taxes, insurance, vacancy, maintenance, management) minus the fixed principal-and-interest payment on the refinance.
The defaults here are deliberately derived from public statewide data, so they illustrate the Texas market rather than any specific property. The formulas, worked examples, and caveats are explained in full in the national BRRRR calculator guide, and the interactive tool above applies exactly the same math to whatever numbers you enter.
Sources
- Typical home value: Zillow Home Value Index (all homes, mid tier, seasonally adjusted), September 2026.
- Median household income: U.S. Census Bureau, American Community Survey 1-year estimates, table B19013, 2024.
- Median gross rent: U.S. Census Bureau, American Community Survey 1-year estimates, table B25064, 2024.
- Effective property tax rate: Median real estate taxes paid (B25103) ÷ median home value (B25077), Census ACS 1-year, the Tax Foundation's method, 2024.
- Homeowners insurance: Keystone estimate of a typical annual premium. Replace it with a quote for the address, 2026.
Read the full methodology, worked example, and caveats in the national BRRRR Calculator guide.
Texas FAQ
- Is BRRRR investing realistic in Texas at today's interest rates?
- It depends on the local rent-to-value ratio. At the defaults above — a $265,000 ARV rented for $2,225 per month — the deal runs $98 of negative cash flow, because carrying a 75% LTV refinance at 6.875% needs roughly $2,353 of rent (10.7% gross) while the example delivers 10.1%. Texas deals pencil when you buy deeper than the 65%-of-ARV default or find rent above the statewide median.
- How much cash do I need for a BRRRR deal in Texas?
- On the example above, about $28,569 stays in the deal after the refinance — the down payment, rehab, closing costs, and six months of holding costs minus what the refinance returns. Lenders typically require reserves of six months of payments on top, and BRRRR investors also fund cost overruns: the example budgets a $40,000 rehab, and real rehabs routinely overrun 10–20%.
- Do Texas property taxes break BRRRR cash flow?
- At 1.31%, Texas's effective rate produces $3,470 per year on the example ARV — $289 monthly, roughly 13% of the assumed rent. Texas has no state income tax and one of the highest effective property tax rates in the US, levied by county, school district, and special districts; the homestead exemption applies only to a primary residence. Always re-run the number from the assessor's bill for the specific parcel.
- What rent should I assume for a Texas rental?
- The defaults use $2,225 — about 1.5× the statewide median of $1,475, reflecting that BRRRR candidates are typically three-bedroom single-family homes rather than the apartments that pull the overall median down. Replace it with a comps-based rent before trusting any output: an arm's-length rental of a similar house within a mile, rented in the last 90 days.
Other state editions
Every state gets its own edition of the BRRRR Calculator, preloaded with that market's typical values, tax rates, and insurance costs: