Austin Suburbs with the Best ROI for Real Estate Investors

Austin has long been a curiosity for real estate investors who see the tech jobs, influx of people and tremendous growth. Now that the Austin real estate market is slowing a bit, we are seeing more price reductions and homes taking longer to sell. This has piqued the curiosity of investors again and they are starting to revisit Austin. One of the common questions we are asked is, where can you find the best return on investment? We’ve done some analysis, broken down by city, where we’ve calculated where you can find the best return on investment in the five counties surrounding Austin (Travis, Hays, Williamson, Bastrop and Caldwell). We’ve considered single family homes for this analysis as those have been shown to produce a higher ROI than multi-family properties. Here are the Austin suburbs with the best ROI for real estate investors. Austin itself also made the analysis and we’ve split that into the section of Austin that’s located in Travis County and the section of Austin located in Williamson County. How do the areas stack up? Scroll down for a deep dive.

Austin Suburbs with the Best ROI Mapped

For those unfamiliar with where these suburbs are located, we’ve pinned them on the map below. The pins have a detailed breakdown of numbers for the city, just like we’ve listed below.

Biggest Consideration for ROI – Property Taxes

Property taxes in Austin are a significant expense for landlords. There are few exemptions a landlord can qualify for that will help them mitigate assessed value increases or cap tax bills like homesteaders can. That being said, property taxes are something every real estate investor should factor into their investment profile as they are typically the biggest expense.

Property taxes vary by neighborhood, and sometimes even vary within a neighborhood. So, it’s very important to visit the tax assessor’s website to confirm the tax rate for the property you are considering.

For the purposes of this analysis, we’ve used data from the Austin Chamber of Commerce, who put together some average property tax rate data by city. We’ve used this, along with average price, to calculate average property tax amount by city.

Price to Acquire and Expected Rents

Next you want to consider how much it will cost to acquire the property and how much you can expect to get in rent. We’ve included average and median price data for each city.

Vacancy – How Long Will a Property Sit Vacant Waiting for a Tenant

Finally, it is important to consider how long it will take to find a tenant for the property. To give us some guidance for this number, we’ve used average rental days on the market. This won’t factor in the time to do a make ready on the property, so you might want to add a few days to account for this time.

Austin Suburbs with the Best ROI for Real Estate Investors

Here are the Austin suburbs for best ROI for real estate investors from highest ROI to lowest ROI.

Jarrell

• County: Williamson
• Tax Rate: 2.2434
• Average Purchase $/SqFt: $184.99
• Median Purchase $/SqFt: $184.52
• Average Purchase Price: $319,818
• Median Purchase Price: $310,000
• Average SqFt: 1,782
• Average Rental Days on Market: 33
• Average Rental $/SqFt: $1.15
• Median Rental $/SqFt: $1.17
• Average Rent: $1,904
• Average Yearly Rent Minus Vacancy: $20,782
• Average Property Tax: $7,175
• Gross Income: $13,607
• ROI: 4.25

Jarrell has recently come into the scene as one of the most affordable Austin suburbs. Established in the early 1900s with the addition of the railroad, Jarrell saw a quick rise in population, followed by a dramatic fall when the railroad shut down in the 1930s. For the next 60 or so years, Jarrell was a sleepy little town losing population yearly. In the 1990s, we saw a bit of growth with the population doubling from 200 to 400. In 2009, we saw even more growth when 15 business opened. Today, Jarrell is home to one of the fastest selling neighborhoods in the country. And, as Austin becomes more expensive and buyers are looking for something more affordable, Jarrell has grown substantially. The downside is Jarrell is very much a small town with a few downtown businesses, a grocery store and a few suburban feeling neighborhoods. If you want to get anywhere, you have to drive at least 15 minutes. Tenants move to Jarrell for affordability, so you will have to compete on affordability with lower rents. You’ll also pay less, with the average price around $320k. Jarrell is great if you’re looking for short term cash flow and will see where appreciation goes in the coming years.

For more info, visit our Jarrell Neighborhood Guide.

Jarrell Neighborhood Map

Jarrell Homes for Sale

SEARCH ALL JARRELL HOMES FOR SALENo Email Required!

Lockhart

• County: Caldwell
• Tax Rate: 2.3082
• Average Purchase $/SqFt: $211.43
• Median Purchase $/SqFt: $198.57
• Average Purchase Price: $335,254
• Median Purchase Price: $332,553
• Average SqFt: 1,634
• Average Rental Days on Market: 25
• Average Rental $/SqFt: $1.22
• Median Rental $/SqFt: $1.22
• Average Rent: $1,849
• Average Yearly Rent Minus Vacancy: $20,668
• Average Property Tax: $7,738
• Gross Income: $12,930
• ROI: 3.86

What was only known for being the Barbecue Capital of Texas not even a decade ago, Lockhart has quickly become one of the top rated Austin suburbs for affordability. With a population of nearly 15,000 as of the 2020 census, Lockhart is much bigger than the city that tops this list, Jarrell, which only had around 2,000 residents as of the 2020 census. What sets Lockhart apart is its access to Austin via 130, which is a much less traveled road compared to 35, especially south of Austin. Lockhart attracts those who still want to be connected to the nightlife and events in Austin and that is much more easily accessible from south versus north. Lockhart also has a quaint downtown square with restaurants, coffee shops and shopping, so you really don’t have to leave Lockhart if you don’t want to. In terms of investment, Lockhart seems to be where the growth is heading and with big employers like Tesla opening in east Austin, my suspicion is this growth will continue. You will still have to compete on price because most residents who move outside of Austin aren’t willing to pay Austin rent prices. But, you’ll pay less for a house than you will if it was in Austin.

For more info, visit our Lockhart Neighborhood Guide.

Lockhart Neighborhood Map

Lockhart Homes for Sale

SEARCH ALL LOCKHART HOMES FOR SALENo Email Required!

Elgin

• County: Bastrop
• Tax Rate: 2.4591
• Average Purchase $/SqFt: $217.05
• Median Purchase $/SqFt: $214.99
• Average Purchase Price: $355,428
• Median Purchase Price: $338,420
• Average SqFt: 1,687
• Average Rental Days on Market: 31
• Average Rental $/SqFt: $1.10
• Median Rental $/SqFt: $1.06
• Average Rent: $1,935
• Average Yearly Rent Minus Vacancy: $21,248
• Average Property Tax: $8,740
• Gross Income: $12,508
• ROI: 3.52

Located at the north end of Bastrop County where 290 dead ends to Highway 95, Elgin is one of the more recently developing cities. Population at the 2020 census was just under 10,000 and is predicted to be as high as 60,000 by the 2030 census. Elgin very much has a small town feel, which can either attract or deter potential tenants. As there isn’t much to do in Elgin itself, tenants who move to Elgin do so for affordability. We are seeing new construction pop up all around Elgin and that will bring more commercial development if residents continue moving there. As Elgin is a newcomer to the Austin metro scene, it’s one we plan to watch in teh coming years.

For more info, visit our Elgin Neighborhood Guide.

Elgin Neighborhood Map

Elgin Homes for Sale

SEARCH ALL ELGIN HOMES FOR SALENo Email Required!

San Marcos

• County: Hays
• Tax Rate: 2.1605
• Average Purchase $/SqFt: $218.29
• Median Purchase $/SqFt: $212.89
• Average Purchase Price: $397,564
• Median Purchase Price: $351,142
• Average SqFt: 1,853
• Average Rental Days on Market: 34
• Average Rental $/SqFt: $1.28
• Median Rental $/SqFt: $1.26
• Average Rent: $2,048
• Average Yearly Rent Minus Vacancy: $22,287
• Average Property Tax: $8,589
• Gross Income: $13,697
• ROI: 3.45

San Marcos has long been appealing to investors because of its proximity to Texas State University and the endless supply of students who need housing. But, as Austin becomes more expensive, San Marcos is attracting tenants who work in Austin or San Antonio and often times households that work in separate directions. Rather than leaving one member with an extremely long commute, they split the difference between the two cities. San Marcos has both downtown living with older construction and newer construction just outside of the downtown area. Tenants choose San Marcos for affordability and they will tend to pay more for newer construction. San Marcos is a little safer investment than the previous choices because it has more industry and employment options nearby.

For more info, visit our San Marcos Neighborhood Guide.

San Marcos Neighborhood Map

San Marcos Homes for Sale

SEARCH ALL SAN MARCOS HOMES FOR SALENo Email Required!

Taylor

• County: Williamson
• Tax Rate: 2.3100
• Average Purchase $/SqFt: $211.12
• Median Purchase $/SqFt: $201.65
• Average Purchase Price: $366,679
• Median Purchase Price: $344,181
• Average SqFt: 1,756
• Average Rental Days on Market: 31
• Average Rental $/SqFt: $1.32
• Median Rental $/SqFt: $1.32
• Average Rent: $1,918
• Average Yearly Rent Minus Vacancy: $21,061
• Average Property Tax: $8,470
• Gross Income: $12,591
• ROI: 3.43

Located just east of Hutto, Taylor became a player in the Austin suburban market when Samsung decided to put a semiconductor plant there. Though it’s not going to draw as many jobs as we once thought, it will still bring a bigger industry to the area. Taylor is the city with the most “small town” feel on this list. And a lot of that stems from the fact that that’s how the residents want to keep it. They see Hutto exploding and want to keep Taylor feeling like Texas. But, as with any growing area, growth is finding its way there with builders like DR Horton and Centex building affordable homes. Investors like Taylor because its affordable and builders will still sell to them, even when the Austin market was red hot.

For more info, visit our Taylor Neighborhood Guide.

Taylor Neighborhood Map

Taylor Homes for Sale

SEARCH ALL TAYLOR HOMES FOR SALENo Email Required!

Hutto

• County: Williamson
• Tax Rate: 2.3288
• Average Purchase $/SqFt: $209.91
• Median Purchase $/SqFt: $206.98
• Average Purchase Price: $430,199
• Median Purchase Price: $411,320
• Average SqFt: 2,085
• Average Rental Days on Market: 30
• Average Rental $/SqFt: $1.17
• Median Rental $/SqFt: $1.16
• Average Rent: $2,194
• Average Yearly Rent Minus Vacancy: $24,164
• Average Property Tax: $10,018
• Gross Income: $14,146
• ROI: 3.29

Just east of Round Rock, Hutto’s population took off as Round Rock became less affordable for first time home buyers. Today, we have nearly 30,000 Hutto residents and we can expect that number to grow as Austin grows. 130 is just to the west of the city and provides an easier commute for residents who need to get to Austin or the airport. Tenants are drawn to Hutto because of this easy access to commute arteries, but also for affordability. Though not as affordable as some of the cities higher up on the list, it’s certainly more well known. Investors who are looking for name recognition and an established community north might want to consider Hutto. Schools are improving and commercial land is developing, which means most Hutto residents really don’t need to leave Hutto for the essentials.

For more info, visit our Hutto Neighborhood Guide.

Hutto Neighborhood Map

Hutto Homes for Sale

SEARCH ALL HUTTO HOMES FOR SALENo Email Required!

Kyle

• County: Hays
• Tax Rate: 2.5007
• Average Purchase $/SqFt: $205.38
• Median Purchase $/SqFt: $203.85
• Average Purchase Price: $408,284
• Median Purchase Price: $376,000
• Average SqFt: 2,026
• Average Rental Days on Market: 30
• Average Rental $/SqFt: $1.19
• Median Rental $/SqFt: $1.18
• Average Rent: $2,129
• Average Yearly Rent Minus Vacancy: $23,448
• Average Property Tax: $10,210
• Gross Income: $13,238
• ROI: 3.24

Kyle has been one of the major players in the Austin investment market for about five years now. And, as builders spend more money developing the area, it will only continue to be a big draw for tenants. There are many big box retailers in Kyle and Kyle as a city is spending millions of dollars on improvements to attract more residents. And, so far, it’s working. Kyle’s population went from about 5,000 in 2000 to nearly 30,000 in 2010 and 46,000 in 2020. With more land to develop, we would anticipate the population growing even more in the coming decade. The Hays CISD is continuing to improve, which is drawing tenants who value schools and who want to be closer to Austin for work or entertainment.

For more info, visit our Kyle Neighborhood Guide.

Kyle Neighborhood Map

Kyle Homes for Sale

SEARCH ALL KYLE HOMES FOR SALENo Email Required!

Pflugerville

• County: Travis
• Tax Rate: 2.1441
• Average Purchase $/SqFt: $215.66
• Median Purchase $/SqFt: $214.47
• Average Purchase Price: $476,334
• Median Purchase Price: $450,000
• Average SqFt: 2,281
• Average Rental Days on Market: 26
• Average Rental $/SqFt: $1.21
• Median Rental $/SqFt: $1.20
• Average Rent: $2,302
• Average Yearly Rent Minus Vacancy: $25,656
• Average Property Tax: $10,213
• Gross Income: $15,443
• ROI: 3.24

Pflugerville was one of the first Austin suburbs to explode in population and was once considered far outside of town. Now it’s one of the closer suburbs and attracts tenants who value schools and proximity to Austin. The corridor to the east of 130 and 45 is known for its highly rated master planned communities and top rated schools. The commercial development is already well underway and you have nearly every retailer you can imagine plus many options for entertainment and dining. Though Pflugerville is not the highest ROI, it is one of the more safe bets, especially to protect against market downturns where tenants move closer to town.

For more info, visit our Pflugerville Neighborhood Guide.

Pflugerville Neighborhood Map

Pflugerville Homes for Sale

SEARCH ALL PFLUGERVILLE HOMES FOR SALENo Email Required!

Bastrop

• County: Bastrop
• Tax Rate: 2.3744
• Average Purchase $/SqFt: $219.61
• Median Purchase $/SqFt: $219.33
• Average Purchase Price: $444,991
• Median Purchase Price: $395,000
• Average SqFt: 2,037
• Average Rental Days on Market: 26
• Average Rental $/SqFt: $1.29
• Median Rental $/SqFt: $1.29
• Average Rent: $2,242
• Average Yearly Rent Minus Vacancy: $24,988
• Average Property Tax: $10,566
• Gross Income: $14,422
• ROI: 3.24

As development heads east, Bastrop has started to make a name for itself among tenants looking for value and a picturesque setting to live near Austin. The population was just under 10,000 at the 2020 census, but that number is expected to grow substantially over the next 10 years. Builders have bought large tracts of land for master planned communities and others are focusing on acreage tracts for higher end housing. So, there will be a mix of options available, which will attract multi-generational families. Time to rent is also a few days lower in Bastrop than in other suburbs, making it more appealing for investors.

For more info, visit our Bastrop Neighborhood Guide.

Bastrop Neighborhood Map

Bastrop Homes for Sale

SEARCH ALL BASTROP HOMES FOR SALENo Email Required!

Buda

• County: Hays
• Tax Rate: 2.3685
• Average Purchase $/SqFt: $221.38
• Median Purchase $/SqFt: $213.92
• Average Purchase Price: $469,034
• Median Purchase Price: $445,000
• Average SqFt: 2,154
• Average Rental Days on Market: 33
• Average Rental $/SqFt: $1.24
• Median Rental $/SqFt: $1.24
• Average Rent: $2,314
• Average Yearly Rent Minus Vacancy: $25,257
• Average Property Tax: $11,109
• Gross Income: $14,148
• ROI: 3.02

The first suburb south of Austin, Buda has a few massive, master planned communities that are often targets for investors who want to be close to Austin, but don’t want to pay Austin prices. Schools in Buda have improved over the last five years, which is attracting even more tenants. Buda itself wants to remain mostly residential, so you won’t find too many commercial developments like you will see in neighboring Kyle. This commitment to residential development is appealing for tenants who want to escape to a quieter pace of life versus having to navigate around busy shopping centers.

For more info, visit our Buda Neighborhood Guide.

Buda Neighborhood Map

Buda Homes for Sale

SEARCH ALL BUDA HOMES FOR SALENo Email Required!

Round Rock

• County: Williamson
• Tax Rate: 1.8964
• Average Purchase $/SqFt: $227.91
• Median Purchase $/SqFt: $224.90
• Average Purchase Price: $518,619
• Median Purchase Price: $475,000
• Average SqFt: 2,314
• Average Rental Days on Market: 31
• Average Rental $/SqFt: $1.18
• Median Rental $/SqFt: $1.17
• Average Rent: $2,317
• Average Yearly Rent Minus Vacancy: $25,443
• Average Property Tax: $9,835
• Gross Income: $15,607
• ROI: 3.01

One of the first most popular suburbs of Austin, Round Rock is known by nearly everyone locally and far away. And, for good reason. Schools are rated well, there is a cute downtown district with restaurants, bars and coffee shops and a range of housing available. Investors like Round Rock because it is a “name brand” suburb, and often a go to for tenants who want proximity to Northwest Austin employers and highly rated schools. Though it’s more expensive than other, newer suburbs, it’s also time tested. Tenants like living in Round Rock and it’s a popular area for resale if you need to get rid of your investment property. If you’re looking for a city that’s a little more protected against market down turns, Round Rock is a good place to start your search.

For more info, visit our Round Rock Neighborhood Guide.

Round Rock Neighborhood Map

Round Rock Homes for Sale

SEARCH ALL ROUND ROCK HOMES FOR SALENo Email Required!

Austin (Williamson County)

• County: Williamson
• Tax Rate: 2.0171
• Average Purchase $/SqFt: $261.80
• Median Purchase $/SqFt: $263.44
• Average Purchase Price: $577,434
• Median Purchase Price: $543,750
• Average SqFt: 2,253
• Average Rental Days on Market: 30
• Average Rental $/SqFt: $1.26
• Median Rental $/SqFt: $1.22
• Average Rent: $2,580
• Average Yearly Rent Minus Vacancy: $28,415
• Average Property Tax: $11,647
• Gross Income: $16,768
• ROI: 2.90

At the very north end of Austin, you’ll see a section that is located in Williamson County. Though many will more associate this area to Round Rock, there are some who want that city of Austin address and they’re willing to pay for it. This area was developed earlier than the other suburbs, so you’ll find homes that are 30-40 years old. Tenants don’t seem to mind the dated features as they are sold on the location versus the flashy finishes inside. This prime address does keep rents higher in this area and make it a desirable location for landlords to focus. You want to budget a little more for maintenance and repairs, however, as homes are older. But, some have been meticulously maintained by previous owners, so you might not need to make any repairs for several years.

For more info, visit our Northwest Austin Neighborhood Guide.

Northwest Austin Neighborhood Map

Northwest Austin Homes for Sale

SEARCH ALL NORTHWEST AUSTIN HOMES FOR SALENo Email Required!

Manor

• County: Travis
• Tax Rate: 2.7146
• Average Purchase $/SqFt: $210.99
• Median Purchase $/SqFt: $207.37
• Average Purchase Price: $425,680
• Median Purchase Price: $400,515
• Average SqFt: 2,065
• Average Rental Days on Market: 27
• Average Rental $/SqFt: $1.21
• Median Rental $/SqFt: $1.22
• Average Rent: $2,140
• Average Yearly Rent Minus Vacancy: $23,780
• Average Property Tax: $11,556
• Gross Income: $12,225
• ROI: 2.87

Manor is in an interesting spot on the list because home prices have accelerated faster than rents, bumping it down on the expected ROI chart. Property taxes are also higher than most other suburbs, on average, making it one of the more expensive areas for investors. Manor is conveniently located just outside of east Austin, so getting to town is easier for tenants than from a city farther out like Elgin. However, the numbers don’t work out here as well as they do in other suburbs and it really does feel like you’re out in the middle of nowhere when you’re in Manor. I think there are other, better suburbs to invest in that are a little more protected from market down turns.

For more info, visit our Manor Neighborhood Guide.

Manor Neighborhood Map

Manor Homes for Sale

SEARCH ALL MANOR HOMES FOR SALENo Email Required!

Georgetown

• County: Williamson
• Tax Rate: 2.0728
• Average Purchase $/SqFt: $239.98
• Median Purchase $/SqFt: $234.32
• Average Purchase Price: $537,777
• Median Purchase Price: $467,995
• Average SqFt: 2,241
• Average Rental Days on Market: 32
• Average Rental $/SqFt: $1.23
• Median Rental $/SqFt: $1.19
• Average Rent: $2,379
• Average Yearly Rent Minus Vacancy: $26,045
• Average Property Tax: $11,147
• Gross Income: $14,898
• ROI: 2.77

Georgetown is really two markets. One market where you’ll find affordable homes in master planned communities and a second where you’ll find luxury homes on acreage lots. Thus the average purchase price is higher and it’s skewing the numbers a bit. So, if you focus on the tract homes in the master planned communities, you can expect a higher rate of return. The positive for Georgetown is it is close to Austin, a more well known suburb and taxes are lower. The area is established with grocery stores, restaurants, a downtown square area and plenty of activities and entertainment. Even tenants coming from outside the area well find Georgetown in their house hunting search. I feel like Georgetown is a little more protected against market downturns as tenants are going to want to move closer to town when they can afford it. If you want some additional safety for your investment, but don’t want to spend Austin money, Georgetown is a good compromise.

For more info, visit our Georgetown Neighborhood Guide.

Georgetown Neighborhood Map

Georgetown Homes for Sale

SEARCH ALL GEORGETOWN HOMES FOR SALENo Email Required!

Cedar Park

• County: Williamson
• Tax Rate: 2.1564
• Average Purchase $/SqFt: $240.55
• Median Purchase $/SqFt: $242.31
• Average Purchase Price: $579,201
• Median Purchase Price: $525,000
• Average SqFt: 2,446
• Average Rental Days on Market: 30
• Average Rental $/SqFt: $1.15
• Median Rental $/SqFt: $1.11
• Average Rent: $2,518
• Average Yearly Rent Minus Vacancy: $27,732
• Average Property Tax: $12,490
• Gross Income: $15,243
• ROI: 2.63

With highly rated schools, newer housing and close proximity to employers in Northwest Austin, Cedar Park was one of the first suburbs to experience a population explosion. Cedar Park is mostly a bedroom community, so you’ll find it’s quieter during the day than at night and on weekends. And, as land becomes scarce, builders are focusing on higher end homes, which is driving the prices of starter homes even higher. Investors who bought back when Cedar Park was a sleepy little town are reaping the benefits of the appreciation. Cedar Park is a great choice if you want something a little safer and don’t mind paying a little more for it.

For more info, visit our Cedar Park Neighborhood Guide.

Cedar Park Neighborhood Map

Cedar Park Homes for Sale

SEARCH ALL CEDAR PARK HOMES FOR SALENo Email Required!

Dripping Springs

• County: Hays
• Tax Rate: 1.8834
• Average Purchase $/SqFt: $285.14
• Median Purchase $/SqFt: $264.59
• Average Purchase Price: $788,709
• Median Purchase Price: $680,000
• Average SqFt: 2,704
• Average Rental Days on Market: 39
• Average Rental $/SqFt: $1.45
• Median Rental $/SqFt: $1.39
• Average Rent: $3,231
• Average Yearly Rent Minus Vacancy: $34,629
• Average Property Tax: $14,855
• Gross Income: $19,775
• ROI: 2.51

Highly rated schools, a more genuine Texas vibe and convenient location to Austin, Dripping Springs commands higher rents than other Austin suburbs. Dripping Springs has been committed to building a higher end housing product, so you won’t find your affordable starter home here. You can expect larger, executive style homes. Some are on large lots and others are on more manageably sized lots. Dripping Springs would be a place you’d consider if you’re looking for a higher end rental for a professional who might be living in Austin for a few years, or who wants to rent something before committing to buying. You will spend more for your investment, but you’ll be in a different tenant pool.

For more info, visit our Dripping Springs Neighborhood Guide.

Dripping Springs Neighborhood Map

Dripping Springs Homes for Sale

SEARCH ALL DRIPPING SPRINGS HOMES FOR SALENo Email Required!

Austin (Travis County)

• County: Travis
• Tax Rate: 1.9749
• Average Purchase $/SqFt: $370.32
• Median Purchase $/SqFt: $320.17
• Average Purchase Price: $800,528
• Median Purchase Price: $597,200
• Average SqFt: 2,132
• Average Rental Days on Market: 32
• Average Rental $/SqFt: $1.73
• Median Rental $/SqFt: $1.56
• Average Rent: $3,025
• Average Yearly Rent Minus Vacancy: $33,118
• Average Property Tax: $15,810
• Gross Income: $17,308
• ROI: 2.16

Though certain sections of Austin are priced out of any sort of decent return on investment, you do have some small sections on the southwest and southeast side of town where you can still find good investments. Austin is one of the safest areas to invest because it’s the big draw for tenants looking to live in the city. Many tenants move from out of state and can’t wrap their heads around something like Jarrell or Elgin. They want to be near the activities that everyone talks about and that’s in the city of Austin. You can increase your return on investment by knowing where to focus your search. If you’re looking, again, for something a little more protected from down turns and that will attract someone willing to pay a premium to be closer to the festivals, bars and restaurants you’ll find in Austin, contact us and we can help you determine which neighborhoods are best.

For more info, visit our Southeast Austin Neighborhood Guide.

Southeast Austin Neighborhood Map

Southeast Austin Homes for Sale

SEARCH ALL SOUTHEAST AUSTIN HOMES FOR SALENo Email Required!

Leander

• County: Williamson & Travis
• Tax Rate: 2.3798
• Average Purchase $/SqFt: $243.58
• Median Purchase $/SqFt: $233.72
• Average Purchase Price: $603,713
• Median Purchase Price: $523,750
• Average SqFt: 2,480
• Average Rental Days on Market: 30
• Average Rental $/SqFt: $1.18
• Median Rental $/SqFt: $1.17
• Average Rent: $2,415
• Average Yearly Rent Minus Vacancy: $26,598
• Average Property Tax: $14,367
• Gross Income: $12,231
• ROI: 2.03

Leander most definitely is one of the cities that is getting skewed by the numbers. As we mentioned, we pulled these numbers city wide and cities like Leander that have a high end, luxury market as well as a starter home market are going to look like they are less desirable for landlords than they really are. Leander is one of the go to markets for investors looking for value, who want to be somewhat near Austin and the tech employers, but who also want a newer home that they don’t have to worry about for years to come. Leander is one of the cities you can find those qualities. Plus, the city of Leander is making a big push to get their name out there and tenants from out of the area are starting to look there. They are sold on the light rail transportation system (though very few people actually use it – but that’s another story), highly rated school district and easy access to 183A.

For more info, visit our Leander Neighborhood Guide.

Leander Neighborhood Map

Leander Homes for Sale

SEARCH ALL LEANDER HOMES FOR SALENo Email Required!

Liberty Hill

• County: Williamson
• Tax Rate: 2.3406
• Average Purchase $/SqFt: $239.42
• Median Purchase $/SqFt: $229.97
• Average Purchase Price: $609,954
• Median Purchase Price: $560,000
• Average SqFt: 2,554
• Average Rental Days on Market: 31
• Average Rental $/SqFt: $1.14
• Median Rental $/SqFt: $1.13
• Average Rent: $2,412
• Average Yearly Rent Minus Vacancy: $26,486
• Average Property Tax: $14,277
• Gross Income: $12,209
• ROI: 2.00

If I was making this list, I’d put Liberty Hill much higher on my priority list. As with Leander and the other areas that have a luxury segment of the market, Liberty Hill as a city is getting punished for those areas. When you look at certain neighborhoods where you’ll find smaller homes and a lower tax rate, you’ll see the numbers work out much better than what we’ve averaged city wide. The Liberty Hill ISD is one of the highest rated school districts in the area and that’s a big draw for tenants who need good schools. If you’re looking to invest in the Austin area, I certainly would not rule out Liberty Hill. You just have to know where to look.

For more info, visit our Liberty Hill Neighborhood Guide.

Liberty Hill Neighborhood Map

Liberty Hill Homes for Sale

SEARCH ALL LIBERTY HILL HOMES FOR SALENo Email Required!

Average price, size and rental data was from ACTRIS closed transactions 08/01/2022-01/31/2023. Property tax rate info was from the Austin Chamber of Commerce.

What We Didn’t Consider

We didn’t consider closing costs, insurance costs, maintenance costs or financing costs as those will be different for all real estate investors and all properties. We wanted to give some consistency to the analysis, but if those apply to you, you might want to factor them into your calculations.

The City I Was Considering is Lower on the List – Should I Reconsider?

Keep in mind, we did this calculation city wide, so it’s going to skew the numbers a bit. Cities like Jarrell, that have a lower median price, are going to fare better in this analysis than cities like Liberty Hill, that have a higher median price. That doesn’t mean don’t invest in Liberty Hill and only invest in Jarrell. There would be reasons to pick Liberty Hill over Jarrell depending on your investment goals. With a little more info about what you’re looking to accomplish, we can help you analyze the data and determine which area is best for you.

Which Austin Area City is Best for Me to Invest?

One of our Austin investment specialists can help you determine which city is right for you. Most likely it is not going to be an entire city that you’ll want to focus, but neighborhoods within a city, or maybe even multiple cities. Email us at info@11OaksRealty.com, call us at (512) 827-8323 or fill out our Buyer Survey. One of our buyer’s agents who are knowledgeable about buying and owning investment homes will reach out to learn a bit more about what your goals are and help you determine which areas are best for you.