Texas in Top-10 for Rent Growth

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Texas scored four of the top-10 cities for rent growth. Houston #1, Dallas #3, Round Rock #7 and Killeen #10. I have property in Killeen and all of my properties fall within the triangle of Dallas-Austin-Houston. Interesting Round Rock made the list by itself as a close suburb of Austin.

I would agree rent appreciation in Killeen has been good. In two years we have been able to raise rents from $595 to $675 for a 2 bedroom 1.5 bath townhouse. We are forcing appreciation by renovations; new floors, great paint and updated fixtures. This year the market is strong enough we will shoot for $735. Killeen still has some catching up to do, a similar 2 bedroom unit in Bryan-College Station rents for $750.

What is everyone else seeing?

I don't know the trend, because I haven't been investing in Killeen long. I bought a 3/1 with a tenant in place. They were paying $765. I am doing some nice renovations and will try to get at least $900.

I saw that same article and Round Rock was 12% from what I recall, I feel that area is poised the best for appreciation over the next few years. I can't speak for Killen, but in Temple I raised rent from $1300 to $1400 this month (after 11 months at $1300) and had 17 tour requests day one. Raised it another $50 (total of $150/mo) and still had a handful of people wanting to rent it sight unseen. From what I've read/heard, 10%+ rent increases in that area but of course depends on the home, area, timing (supply/demand) and your strategy. My strategy is to find a smaller, 3/2, lower priced home in a decent neighborhood of higher priced homes, so it's the lower rent market in a good neighborhood that typically costs more to get into. These homes rent all day. I also have a self-storage facility in Belton and rents have went up substantially since two years ago. They are up about 19-33% in two years (depending on timing and size) on the two largest sized units, along with other added fees. I'm not familiar with Killeen, but it seems to be doing well as well. Glad it's working out for you, it's a good market and cost to entry is fantastic! I didn't realize it was #10 on the list, that's good to see. All the best! 

@Cameron Davis Link didn’t post.

https://www.biggerpockets.com/blog/bpinsights-march-2021?utm_source=Iterable&utm_medium=email&utm_campaign=Newsletter%20%7C%2004/04/21

Hey Peter,

We only have properties in Greater Houston but we're only seeing rent growth in select areas. 

The desirable suburbs like Katy, Sugarland, Cypress, Spring seem to have solid rent growth but outside of town (Texas City, Dayton, Angleton, etc.) the rents have been stagnant. 

Originally posted by @Pete Harper :

Texas scored four of the top-10 cities for rent growth. Houston #1, Dallas #3, Round Rock #7 and Killeen #10. I have property in Killeen and all of my properties fall within the triangle of Dallas-Austin-Houston. Interesting Round Rock made the list by itself as a close suburb of Austin.

I would agree rent appreciation in Killeen has been good. In two years we have been able to raise rents from $595 to $675 for a 2 bedroom 1.5 bath townhouse. We are forcing appreciation by renovations; new floors, great paint and updated fixtures. This year the market is strong enough we will shoot for $735. Killeen still has some catching up to do, a similar 2 bedroom unit in Bryan-College Station rents for $750.

What is everyone else seeing?

Houston for me:  Every quarter in 2020 was better than the one before it.  And Q1 2021 was better still. Q2 is looking to be even better.