Short answer: In Austin, TX, the median home value is $571,000 and the median 3-bedroom rents for $2,217/mo (Census ACS 2024). That's a rent-to-price ratio of 0.39%, so it misses the 1% rule and ranks #39 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$2,228/mo cash flow).
Key numbers
The 1% rule in Austin
Before running a full analysis, many investors check whether rent is at least 1% of price. This is where Austin lands.
Across all rentals (not just 3-bedrooms) the ratio is 0.31%. A home renting for the median 3-bedroom rent would need to cost about $222,000 or less to pass.
A typical Austin home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $2,217 |
| Property tax ($7,468/yr, local median) | −$622 |
| Insurance ($2,860/yr, assumed) | −$238 |
| Vacancy 6% · Maintenance 5% · Management 8% | −$421 |
| Net operating income | $935 |
| Mortgage (P&I on $456,800 at 7.40%) | −$3,163 |
| Monthly cash flow | −$2,228 |
What price works in Austin?
Price is the lever you control. Holding rent at the Austin median, these are the price ceilings for each FirstDoor result.
Takeaways
- Austin's 0.39% ratio is well under the 1% rule (#39 of 50). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $2,228/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $255,000, 55% below the median.
- Rents are outrunning prices: the median 3-bedroom rent rose 0.9% from 2023 to 2024 while values rose −4.9%. That slowly improves the math for buyers.
- Property taxes are heavy: the median bill is $7,468, about 1.31% of value versus 0.89% nationally. Confirm the bill after purchase, since it can reset.
- Renters are the majority here (59% of households), so the tenant pool is deep.
Frequently asked questions
Does Austin pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $2,217/mo and the median home value is $571,000 (Census ACS 2024 1-year), a ratio of 0.39%. To pass at that rent, a home would need to cost about $222,000 or less.
What is the typical rent for a 3-bedroom in Austin?
The median gross rent for a 3-bedroom in Austin, TX is $2,217 a month, and $1,770 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median rose 0.9% from 2023.
Can you cash flow a rental in Austin?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $571,000 home renting for $2,217 loses about $2,228/mo. It breaks even at roughly $255,000.
How much cash do you need to buy a typical rental in Austin?
About $131,300: a 20% down payment of $114,200 plus closing costs we assume at 3% ($17,100). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Austin a good place to buy a first rental?
FirstDoor scores a median-priced home in Austin as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
Compare similar markets
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Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($2,860/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.