Published market hub · July 2026
Houston, TX: a typical house misses 1.20x; the lender's ratio passes under about $126,400, and a house cash flows under about $113,700
At typical rent ($1,200, across rentals of all kinds, apartments included, not a house rent), a house at the typical price ($308,933) comes in at 0.49x, short of the 1.20x cushion. At the typical price, a house needs about $2,933 a month in rent to clear 1.20x. At $1,200 a month, the lender's 1.20x ratio works up to about $126,400 (a $94,800 loan); positive cash flow after a 25% set-aside for vacancy, repairs and management needs about $113,700. No house clears both 1.20x and a $100,000 loan at this rent; minimums vary by lender, so ask yours.
The numbers
DSCR is the monthly rent divided by the full monthly payment (principal, interest, taxes, insurance and any HOA dues). At 1.20x the rent is 20% more than the payment. We use 1.20x as a cushion; many DSCR lenders accept as low as 1.00x. A lender sizes the loan on the lease or the appraiser's estimate of market rent (Form 1007), often the lower of the two, not on a city figure.
Typical rent
$1,200/mo
A typical asking rent across rentals of all kinds, apartments included, not a house rent. This page has no 3-bedroom figure, so every ratio on this page uses this rent. A specific house can rent for more or less than this figure, so run the numbers on that house's own rent.
Max monthly payment
$1,000/mo
Typical rent ($1,200/mo) divided by 1.20 (a 1.20x DSCR). Taxes and insurance are included in this payment; budget vacancy and repairs on top. Check it against your own numbers.
Typical home value
$308,933
The typical home value for the city as a whole.
Rent-to-price
4.7%
A year of rent divided by the typical home value. Higher means the rent does more of the work.
A typical house
0.49x DSCR
A house at $308,933 renting for $1,200 a month falls short of 1.20x and loses about $1,544 a month after a 25% set-aside for vacancy, repairs and management. The lender's ratio works near $126,400 (59% lower); a house that rents for more, or a bigger down payment, also gets there.
Price that works
up to about $126,400
The most a house can cost at 1.20x if it rents for $1,200 a month. That clears the lender's ratio; to also cover a 25% set-aside for vacancy, repairs and management, the price needs to be near $113,700. At 1.00x, many lenders' floor, it is about $151,600, though lenders often charge more or lend less there. Every price here assumes the house rents for $1,200; check its own rent.
Assumptions for every price on this page: 25% down and a 7.5% 30-year rate. Property taxes about 2.2% and landlord insurance about 1% of the price a year, a rough estimate for Texas rentals. Many houses here carry HOA dues, and they count in the lender's payment; this example assumes none, so add the house's dues.
ZIP codes
Where to start
No ZIP code with both figures clears 1.20x at its median price.
| ZIP code | Median price | Median rent | Price that works | Verdict |
|---|---|---|---|---|
| 77007 | ~$505,366 | ~$1,879/mo | up to ~$197,900 | Median house misses 1.20x (0.47x); 1.20x needs a price about 61% under the median |
Price that works: the most you could pay at 1.20x on that ZIP's median rent, on the assumptions above. A ZIP works when its median price is at or under that price and a 75% loan on it reaches the common $100,000 minimum; otherwise the verdict gives the ratio at the median price and what is missing. ZIP codes without both a median price and a median rent are not listed.
Buy, refinance, or hold
What to do if you are buying, refinancing, or holding
Buying
At $1,200 a month, the lender's ratio works only under about $126,400, which puts a 75% loan under the common $100,000 minimum; look for a house that rents for more, a 2-4 unit property, or a lender with a lower minimum.
Refinancing
Consider refinance only if existing assets have strong rent-to-price and low tax burden
Holding
Hold only if property meets DSCR after accounting for taxes/insurance
Application next step
Found a property here that works on your numbers?
Continue into Sphinx Capital's loan application when the rent on a specific property covers its full monthly payment with the 1.20x cushion. DSCRInfo will carry this market context into the application start.
If you apply with Sphinx Capital from this page, DSCRInfo may receive referral compensation. See disclosures
Risks
What could make this market stop working
- Houston DSCR economics can be compressed by property taxes, so a seemingly adequate rent can still fail once monthly payment is modeled conservatively.
- The typical rent is a single public estimate, not a unit-specific set of similar rentals, so true 1-4 unit deal review can differ materially by submarket and asset condition.
- Using a metro value fallback can misstate city neighborhood pricing, especially for investor targets outside the central city core.
- Mortgage rates remain elevated at 6.81% for the 30-year fixed reference, which can compress DSCR on Houston assets unless rent is strong relative to taxes and insurance.
- Houston property-tax burden can make rent-to-price coverage tighter than in lower-tax markets, increasing the chance that a deal fails DSCR even if the asking price looks attractive.
About these numbers
How this page is built
Updated July 25, 2026. City rent and home value, ZIP code prices and rents, and listing activity come from public sources, including U.S. federal and government datasets and public property listings. They show whether a market is worth a look, not whether a specific house works.
Every county in Texas, with rent, property tax, insurance, vacancy and jobs: Texas rent, property tax and insurance by county.
Application next step
Ready to apply?
Apply with Sphinx Capital once the market numbers and your property's numbers agree.