• Sign Up
  • Log In
Robert
Robert
(512) 800-3595robert@teamprice.com
    • Search
    • Market Report
    • Buying
    • Selling
    • Areas
      • Hutto
      • Fort Hood
      • Buda
      • Bastrop
      • Barton Hills
      • Round Rock
      • Cedar Park
      • Austin
      • Westlake Hills
      • Tarrytown
      • Crestview
      • Downtown Austin
    • Market Update
    • Properties
      • Search Properties
      • Featured Properties
    • Insight
    • Blog
    • About
      • Meet Robert Foradory
      • About Team Price
      • Testimonials
    • Contact
    • Robert(512) 800-3595
      robert@teamprice.com
      Copy Email
    • Team Price Real Estate
      7320 N Mo-Pac
      Austin, TX 78731
      (512) 213-0213
      dan@teamprice.com

    Search

    • Search Properties
    • By City
    • By Subdivision
    • By Zip

    Explore

    • Featured Properties
    • Areas
    • Property Search

    Company

    • Guarantee
    • Work with Us
    • Interview Questions
    • Join Our Team

    Resources

    • Insight and Statistics
    • Tenant Pre-Screening
    • Real Estate Forms
    • Real Estate Glossary

    About

    • Home
    • About
    • Agents
    • Testimonials
    • Contact Us

    Account

    • Login
    • Sign Up
    Robert - Footer Logo
    • Texas Real Estate Commission Information About Brokerage Services
    • Texas Real Estate Commission Consumer Protection Notice
    • Privacy
    • Terms
    • DMCA
    • Accessibility
    • Fair Housing
    © 2025 Team Price Real Estate. All rights reserved.
    Website built by CloseHack.
    Central Texas Multiple Listing Service

    Central Texas MLS | Four Rivers Association of REALTORS® All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Multiple Listing Service. Real estate listings held by brokerage firms other than Robert may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. Copyright ©2022 All rights reserved.

    Austin Board of Realtors

    The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Based on information from the Austin Board of REALTORS®. Neither the Board nor ACTRIS guarantees or is in any way responsible for its accuracy. All data is provided "AS IS" and with all faults. Data maintained by the Board or ACTRIS may not reflect all real estate activity in the market.

    • MLSGrid IDX Data Notice
    • DMCA Notice
    Austin Real Estate: Highest Cap Rate ZIP Codes for Rental Investors in 2025

    Top 5 Austin-Area ZIP Codes with the Highest Cap Rates – May 2025 Data

    Published 05/07/2025 | Posted by Robert Foradory


    As of May 7, 2025, updated real estate data highlights which ZIP codes in the Austin metro area are offering the strongest gross cap rates for single-family rental properties. The cap rate, or capitalization rate, is a key performance metric that compares a property's rental income to its purchase price. This report calculates cap rate using the following formula:

    Cap Rate = (Estimated Annual Rent – Property Tax) ÷ Median Sold Price

    The average desired gross cap rate used for comparison in this analysis is 4.226%. Maintenance costs are listed in the report but are not included in the cap rate formula. Only ZIP codes with sufficient sales data and without too many high-end listings were considered.

    The ZIP code 78725, located in East Austin, recorded the highest gross cap rate at 5.51%. The median sold price in this area was $301,900. With property taxes around $5,470 and estimated annual rent at $23,255, the net operating income (NOI) totaled $16,629. This cap rate places 78725 at the top of the list for rental return potential.

    The second-highest cap rate was found in 78724, also in East Austin. This area posted a gross cap rate of 5.10%. Homes in this ZIP code had a median price of $325,000. Annual property taxes were reported at $7,249, while estimated rent was $25,088. The resulting NOI was $16,572.

    Next on the list was 78654, located in Marble Falls, with a cap rate of 4.70%. The median home price here was $360,000. Property taxes were $6,966, and projected annual rent was $25,167. The NOI in this area reached $16,915.

    The 78611 ZIP code in Burnet also showed strong numbers with a cap rate of 4.69%. The average sold price was $325,175. Taxes came in at $6,210 annually, and rent was estimated at $22,584, resulting in a NOI of $15,253.

    Rounding out the top five was 76537, covering Jarrell. This area reported a gross cap rate of 4.52%. Homes were selling for a median price of $280,563. Property taxes were $7,554, and annual rent came in at $21,237. The NOI reached $12,670.

    These five ZIP codes exceeded the 4.226% average desired cap rate used in the analysis. All five had median home prices under $400,000, lower property tax totals compared to other areas, and rental income that supported strong net operating figures. These numbers reflect gross cap rate performance based solely on property taxes and rent and do not account for other expenses like maintenance, insurance, or vacancy rates.

    This data snapshot was compiled by Cap Rate Team Price Real Estate and is current as of May 7, 2025.

    • Austin real estate
    • cap rate Austin 2025
    • best ZIP codes for investment Austin
    • rental income Austin
    • real estate investing Texas
    • Austin housing market
    • gross cap rate Austin
    • Del Valle real estate
    • Pflugerville investment properties
    • Kyle TX rentals
    • Georgetown rental returns
    • Southeast Austin housing
    • Texas landlord market
    • property investor Austin
    • Austin rental property analysis

    Related Articles

    Keep reading other bits of knowledge from our team.

      Request Info

      Have a question about this article or want to learn more?