Real estate investors from across the country are increasingly drawn to investment properties in Texas to develop their rental portfolios. The Lone Star State is a current favorite among real estate investors for several compelling reasons, including a robust economy, attractive pricing, and stable rental market conditions. Easy Street Capital is thrilled to be at the forefront as a premier provider of investment property loans for real estate investors seeking to establish rental portfolios in Texas!
Investment Property Loan Options for Texas Real Estate Investors
When it comes to real estate investing in Texas, investors can choose from several flexible investment property loan options to scale quickly in some of the best places to invest in real estate in 2025. Texas has many older homes that are perfect for value-add projects, making hard money renovation loans an ideal option for buying fast, funding repairs, and either flipping for profit or using the BRRRR strategy with a long-term DSCR loan.
Beyond renovation projects and BRRRR deals, Texas continues to see a surge in ground-up construction opportunities, especially in fast-growing suburbs and build-to-rent communities. For investors developing single-family homes, duplexes, fourplexes, or small multifamily projects, new construction loans (also known as construction hard money loans) offer fast approvals, flexible draws, and the ability to finance the build from start to finish.
Long-term DSCR rental loans are also a strong fit for investors targeting turnkey rental properties. These homes are move-in ready, require no renovation, and deliver immediate cash flow. Many DSCR loans offer 30-year fixed rates, helping investors lock in predictable financing costs while rents and property values continue trending upward across many Texas markets.
Bottom line: Whether you’re renovating an older home, building new construction, financing a short-term rental, or purchasing a turnkey long-term rental, Texas offers some of the strongest opportunities for real estate investors—and the right loan type can maximize your speed, leverage, and long-term returns.
Why Texas Is One of the Most Landlord-Friendly States for Real Estate Investors
Texas is widely regarded as a landlord-friendly state, offering rental property owners a high degree of flexibility and protection. With no statewide rent control, investors have the ability to price rentals according to market demand, helping maximize cash flow and adapt quickly to changing conditions. These favorable regulations make Texas an appealing environment for DSCR borrowers and long-term rental investors seeking stability and control over their investment strategy.
In addition, if a tenant fails to pay rent or violates the terms of their lease, Texas rental property owners can begin the eviction process relatively quickly. For example, landlords can serve a tenant with a “3-day notice to quit” if they fail to pay rent. After just three days, the landlord can file a complaint for eviction in court. This provides landlords with a legal recourse to promptly address tenant issues, ensuring they can maintain the profitability of their investment.
Overall, Texas is a landlord-friendly state that offers many advantages for investors interested in rental properties. With its favorable rental market conditions, landlords can enjoy the freedom to set rents at market rates and take necessary actions to protect their investment.
Best Cities and Markets to Invest in Real Estate in Texas
Texas is a favored market among real estate investors due to its vast options and diverse landscapes. As the second largest state in the country by both area and population, there are markets and opportunities for many different types of real estate investors. The cities highlighted in this article are a mixture of broadly recognized metropolises and smaller, emerging markets.
Houston is the largest city in Texas and the sixth-largest city in all of North America. Austin exudes an electrifying blend of creativity, live music, and outdoor adventure, making it a unique and captivating city for all to enjoy. Dallas is boasts a thriving cosmopolitan atmosphere, blending modern innovation with Southern hospitality to create a dynamic urban experience. A quick drive west brings you to Fort Worth, a city with a charming Texan identity that makes up the other half of the DFW megaplex. San Antonio enchants visitors with its rich history and a cultural tapestry that beautifully weaves together the past and the present.
There are plenty of opportunities outside the state’s major cities. Galveston is an excellent STR market, offering a coastal haven that captures the heart and soothes the soul. El Paso, nestled against the rugged beauty of the Franklin Mountains, is a vibrant border city where Mexican and American cultures harmoniously blend. Corpus Christi a city known for its maritime charm, is home to a lively harbor that tempts anglers and sailors alike. South Padre Island is a captivating vacation destination with and a lively beachfront scene that ensures an unforgettable and rejuvenating getaway by the Gulf’s sparkling waters. Lubbock, known as the “Hub City” is a close-knit community in the heart of West Texas known for its music scene and thought-provoking museums.
Houston
Houston, the largest city in the state, boasts a population of over 2.3 million people. Houston’s diverse economy in energy, healthcare, aerospace offers employment and stability, benefiting renters. The city is home to numerous Fortune 500 companies, including ExxonMobil, Chevron, and Phillips 66, attracting a skilled workforce in need of rental properties.
As a major international hub, Houston attracts visitors from around the world. Attractions like NASA Center, Museum District, and culinary scene make it an appealing tourist destination, known for its charm. Tourism fuels short-term rental growth, especially in hotspots like Downtown, the Galleria, and the Energy Corridor.
Investors in Houston can capitalize on the city’s steady rental market. As of December 2025, the typical monthly rent in Houston averages around $1,475–$1,500, depending on unit type and neighborhood. The typical Houston single-family home value is approximately $261,700, with median listing prices ranging from $325,000 to $340,000—still affordable compared to other major U.S. metros. Forecasts suggest rent growth could average around 4–5% annually through 2026, supported by strong population trends and moderating new construction.
Houston’s vibrant appeal extends beyond its economic strength. Attractions like the Museum of Fine Arts, the Houston Livestock Show and Rodeo, and proximity to Galveston Bay continue to draw tourists and support a healthy STR market year-round.
Considering Houston’s strong economic fundamentals, projected rent growth, and relative affordability, the market remains an excellent opportunity for real estate investors focused on both single-family and multifamily rental strategies. With modest home price movements and sustained rental demand expected in 2026, Houston offers a favorable environment for long-term cash flow and appreciation potential.
Austin
Austin, the state’s capital, has a population of just under 1 million and remains one of the most dynamic real estate markets in Texas. Known for its music culture, diversity, and strong quality of life, Austin offers a wide range of investment opportunities across both long-term rentals and short-term rental properties.
As a major destination for tourists, business travelers, and festival attendees, Austin continues to see strong demand for short-term rentals. Events like SXSW and Austin City Limits bring in hundreds of thousands of visitors each year, supporting high occupancy rates in popular neighborhoods such as Downtown, South Congress, and East Austin. Outdoor attractions like Lady Bird Lake and Zilker Park, along with Austin’s reputation as the Live Music Capital of the World, further reinforce its appeal for year-round tourism and STR performance.
Economically, Austin remains a leading technology and innovation hub. Major employers like Dell, IBM, Tesla, and a rapidly expanding startup ecosystem draw continuous inflows of students, engineers, entrepreneurs, and researchers. This sustained growth has made Austin one of the strongest job markets in the country—and notably, it is also home to Easy Street Capital’s headquarters.
Austin is also anchored by The University of Texas at Austin, a flagship institution with a student population of roughly 55,000. This large student base creates reliable rental demand in areas surrounding campus, offering investors the opportunity to target a stable niche market. Additionally, UT’s large alumni network drives consistent short-term rental demand during football season and major campus events, providing investors multiple pathways to generate revenue.
Although Austin experienced rapid appreciation throughout the early 2020s, the market began to moderate in 2024–2025. As of late 2025, home values in Austin have slightly softened but remain among the highest in Texas, while rental demand continues to rise. Looking into 2026, analysts project steady rent growth and gradual price stabilization, making Austin a compelling option for investors focused on long-term appreciation, student housing, and high-demand STRs.
Dallas
Dallas, located in northern Texas, boasts a population of more than 1.3 million people. With a well-established economy centered around finance, technology, logistics, and healthcare, Dallas provides a strong employment base that supports long-term rental stability. Major Fortune 500 companies—including AT&T, Southwest Airlines, and Texas Instruments—anchor the region and attract a steady influx of professionals seeking rental housing.
As a major cultural and commercial hub, Dallas draws visitors from across the world. Attractions like the Dallas Arts District, Dallas World Aquarium, and the city’s expanding culinary scene contribute to strong tourism activity. This demand fuels a healthy short-term rental market, particularly in high-traffic neighborhoods such as Downtown, Uptown, and the Design District.
Investors can also take advantage of Dallas’s broad and stable rental market. As of late 2025, average rents across Dallas are roughly $1,850–$2,000 per month, depending on property type and neighborhood. Single-family home prices remain relatively attainable for a large metro area, with median sale prices in the $400,000–$420,000 range. Looking into 2026, analysts expect moderate rent growth and continued population expansion, keeping Dallas attractive for both cash-flow and appreciation-focused investors.
Dallas also offers a wide range of lifestyle attractions, such as the Dallas Arboretum and Botanical Garden, Dallas Museum of Art, and multiple professional sports franchises. Outdoor amenities like White Rock Lake and entertainment venues such as the American Airlines Center support consistent demand for both long-term and short-term rentals.
However, investors should remain aware that short-term rental regulations in Dallas continue to evolve. A new set of STR rules began in late 2023, and the city may continue adjusting regulations in response to neighborhood concerns. Staying informed on local ordinances is essential for investors planning STR strategies in the Dallas market.
San Antonio
San Antonio, located in southern Texas, is a fast-growing city with a population exceeding 1.5 million residents. Its diverse economy—anchored by healthcare, military, tourism, cybersecurity, and an emerging technology sector—creates a stable foundation for long-term rental demand. Major employers such as USAA, Valero Energy, H-E-B, and multiple military installations attract a steady workforce seeking affordable housing opportunities.
Cultural attractions are abundant throughout San Antonio, supported by the city’s rich history and vibrant arts scene. Iconic landmarks like The Alamo, the River Walk, and San Antonio Missions National Historical Park draw millions of visitors each year, contributing to strong tourism activity and a healthy short-term rental market in central districts. The city also hosts numerous festivals and multicultural events that further enhance its appeal as a year-round destination.
San Antonio’s real estate market has shown consistent, sustainable growth over the past several years. According to Redfin, the city’s median sales price rose from $222,994 in early 2021 to approximately $249,950 by early 2025—a 14–15% increase over four years. Despite this appreciation, San Antonio remains one of the more affordable major metros in Texas, making it attractive for investors targeting cash-flowing single-family or small multifamily properties.
Looking ahead to 2026, analysts expect steady population growth, resilient rental demand, and modest price appreciation, especially in neighborhoods close to employment centers and military bases. With its affordability, strong local economy, and year-round tourism, San Antonio remains a compelling market for investors pursuing both long-term rental strategies and short-term rental opportunities.
Galveston
Galveston, located on the Gulf Coast of Texas, blends coastal beauty with historic charm and remains one of the state’s most unique real estate markets. The island is known for its sandy beaches, Victorian architecture, and vibrant maritime heritage. Popular attractions such as Moody Mansion, the Galveston Railroad Museum, and the Strand Historic District draw steady traffic, while Galveston Island State Park and a wide range of outdoor activities appeal to visitors year-round. As of late 2025, the typical home value is approximately $320,448 (Zillow), reflecting a market that balances accessibility with high tourism-driven demand.
Tourism continues to be a major force in Galveston’s economic success. The Port of Galveston has experienced significant momentum, setting cruise-traffic records and strengthening local business activity. In 2024, the Port of Galveston welcomed 3.4 million passengers, setting a new record for cruise traffic. With a newly opened fourth cruise terminal at Pier 16, the Port now expects 445 sailings and nearly 4 million passenger movements in 2026 — a clear indication that visitor numbers will likely grow even higher. This influx supports high STR demand and makes coastal Galveston properties a strong candidate for investors seeking rental income from vacationers, cruise-goers, and seasonal visitors.
Short-term rental metrics further highlight Galveston’s investment appeal. According to AirDNA’s 2025 data, the city holds an “investability” score of 78/100, with average projected annual revenues near $42,800, making it a standout market for investors seeking dependable STR performance. The combination of strong tourism, a diverse range of property types, and ongoing port expansion reinforces Galveston’s reputation as a desirable area for both income-producing rentals and long-term coastal real estate holdings.
Fort Worth
Fort Worth, located in North Texas, is a fast-growing city with a population of more than 900,000 and a strong identity separate from its Dallas counterpart. While part of the broader DFW metroplex, Fort Worth maintains its own economic momentum, supported by major industries such as manufacturing, energy, aviation, defense, and healthcare. Employers like Lockheed Martin, Bell Flight, and Texas Health Resources contribute to a stable job market and steady rental demand throughout the city.
Fort Worth’s location near Dallas–Fort Worth International Airport—one of the busiest airport hubs in the world—adds another layer of economic strength. The airport supports tens of thousands of jobs and attracts travelers seeking convenient accommodations and transit options, which benefits both traditional rentals and short-term rental investors.
Education also plays a central role in Fort Worth’s housing demand. Texas Christian University (TCU) brings a large student population, faculty, and alumni into the area each year. Student housing near TCU remains a consistent niche for investors, with demand driven by enrollment growth, campus events, and returning alumni during football season and other activities.
Fort Worth remains comparatively affordable within the DFW region, giving investors approachable entry points. According to Zillow, average rents in North Texas remain solid, with Fort Worth rental rates often falling in the $1,900–$2,100 per month range depending on property type and neighborhood. Redfin data places the median single-family home price at roughly $325,000, keeping Fort Worth more accessible than many other large Texas cities. This blend of affordability, economic diversity, and consistent housing demand makes Fort Worth an appealing market for investors pursuing long-term rentals, student housing, or well-located short-term rental properties.
El Paso
El Paso, located along the western edge of Texas, is a steadily expanding city of more than 680,000 residents and serves as one of the most affordable major metros in the state. Its economy is shaped by healthcare, education, military operations, logistics, and international trade—giving the city a balanced foundation for rental demand. Major employers such as Fort Bliss, The University of Texas at El Paso (UTEP), and large regional medical centers support consistent population growth and a stable pool of long-term renters.
El Paso’s cultural identity is deeply influenced by its binational location and rich history. Landmarks such as the Plaza Theatre, El Paso Museum of Art, and Chamizal National Memorial attract visitors seeking arts, heritage, and entertainment. The city’s festivals, culinary scene, and cross-border shopping and tourism also contribute to a steady flow of short-term visitors, with certain neighborhoods benefiting from both seasonal demand and event-based travel.
Housing affordability remains one of El Paso’s biggest advantages for investors. According to Redfin, the median home price increased from $215,000 in January 2023 to $250,950 by October 2025, representing approximately 17% appreciation over less than three years. Even with this growth, El Paso continues to offer some of the lowest entry prices among major Texas metros, making it attractive for investors prioritizing cash flow and long-term value. Late-2025 rental trends show steady pricing across single-family and small multifamily units, helping investors achieve balanced returns without the high entry costs seen in Austin or Dallas.
El Paso’s position along the U.S.–Mexico border, combined with ongoing infrastructure development and a strong military presence, creates durable economic stability. These factors support both traditional rental strategies and buy-and-hold investments. For investors looking to diversify their Texas portfolio with a market that offers low entry prices, consistent demand drivers, and measurable appreciation, El Paso presents a strong opportunity.
Corpus Christi
Corpus Christi, nestled along the picturesque Gulf of Mexico, captivates visitors with its stunning coastal charm and abundant natural beauty. The city’s pristine beaches and mesmerizing sunsets create a warm atmosphere for residents and tourists to be at peace. Furthermore, the city offers a myriad of outdoor activities, including boating, kayaking, and birdwatching in its wildlife-rich areas. With a range of beachfront homes and vacation rentals, Corpus Christi presents an irresistible opportunity for real estate investors looking to explore the lucrative short-term rental market.
Corpus Christi garners an impressive “investability” score of 83/100 as recognized by AirDNA. This signifies the city’s immense potential for real estate investors seeking lucrative opportunities. By investing in properties in Corpus Christi, investors have the potential to generate a substantial average annual income of $46,800. This signifies the potential for vacation rental investors to achieve favorable returns on their investments, given the city’s affordable purchase prices (median sale price of $267,000) and positive market outlook. Short-term rentals in Corpus Christi are likely to cash flow, benefiting from solid occupancy rates and attractive average daily rates. Corpus Christi presents an enticing prospect for real estate investors seeking to capitalize on a thriving vacation rental market.
South Padre Island
South Padre Island is located in southern Texas, close to Mexico, and enchants visitors with its breathtaking coastal charm and abundant natural beauty. The island boasts pristine beaches and captivating sunsets, inviting residents and tourists alike to immerse themselves in its idyllic surroundings. South Padre Island allures fishermen from near and far with access to prime spots and annual fishing tournaments. Additionally, the island offers a plethora of outdoor activities, including boating, kayaking, and birdwatching in its surrounding wildlife-rich areas. With its beachfront properties, South Padre Island presents an irresistible opportunity for investors looking to venture into the short-term rental market. The island’s magnetic appeal as a coastal retreat is undeniable. With its vibrant fishing and outdoor recreation scene, South Padre is truly a highly coveted destination for vacationers.
According to AirDNA, South Padre boasts a solid “investability” score of 88/100. Furthermore, investors have the potential to generate an impressive average annual revenue of $39,900! This reflects the potential for vacation rental investors to obtain favorable returns on their investments, thanks to affordable purchase prices. Short-term rentals are likely to cash flow given the solid occupancy projections and average daily rates in the market. South Padre Island offers an appealing opportunity for real estate investors seeking to capitalize on the city’s coastal appeal and thriving STR market.
Lubbock
Lubbock, situated in the expansive West Texas landscape, is a vibrant city with a distinctive character. Recognized as the birthplace of legendary musician Buddy Holly, Lubbock’s music scene continues to thrive. The city’s Texas Tech University adds a youthful energy, contributing to a lively arts and cultural scene. Visitors discover regional history at museums like the National Ranching Heritage Center and the Silent Wings Museum.
Lubbock real estate balances affordability, demand, attracting visitors and enticing investors with promising opportunities. With a median selling price of $227,250 in October 2025, as reported by Redfin, the market offers an accessible entry point for new investors. This affordability, coupled with the city’s enduring charm and growing amenities, contributes to Lubbock’s overall appeal.
One notable aspect of Lubbock’s real estate market is its low seasonality of demand. Despite fluctuations in various real estate markets, Lubbock maintains a steady demand throughout the year. With a market score of 85/100, this stability is further echoed in the average annual revenue estimate, which hovers around $27,700 according to AirDNA. This resilience underscores the city’s consistent allure for visitors, and reaffirms the strength of the STR market.
Furthermore, the consistent demand for short-term rentals, with the stable single-family rental rate of $1,126, indicates a balanced market where investors can find opportunities that match their preferences and goals. This harmonious equilibrium extends from Lubbock’s low seasonality of demand to the allure of Texas Tech University, a beacon for potential student housing investments. With an array of options to cater to tourists, students, and long-term residents, Lubbock’s real estate market is well-rounded. Lubbock is a promising city known for affordability, community spirit, and consistent demand for rental properties.
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