Short answer: In Lubbock, TX, the median home value is $223,600 and the median 3-bedroom rents for $1,583/mo (Census ACS 2024). That's a rent-to-price ratio of 0.71%, so it misses the 1% rule and would place #3 among the 50 largest US rental markets (Lubbock is the #77 US city by renter households). With 20% down at 7.32%, FirstDoor scores a median-priced home Pass (−$355/mo cash flow).
Key numbers
The 1% rule in Lubbock
A quick screen many investors start with: is monthly rent at least 1% of the price? In Lubbock, here's the answer on typical numbers.
Across all rentals (not just 3-bedrooms) the ratio is 0.55%. A home renting for the median 3-bedroom rent would need to cost about $158,000 or less to pass.
A typical Lubbock 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 7.32%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $1,583 |
| Property tax ($3,025/yr, local median) | −$252 |
| Insurance ($1,120/yr, assumed) | −$93 |
| Vacancy 10% · Maintenance 5% · Management 8% | −$364 |
| Net operating income | $873 |
| Mortgage (P&I on $178,880 at 7.32%) | −$1,229 |
| Monthly cash flow | −$355 |
What price works in Lubbock?
How low would the price need to be? With the median Lubbock 3-bedroom rent, here's where each result kicks in.
Takeaways
- At 0.71%, Lubbock is near the top of the list (it would place #3 among the 50 largest) but still short of 1%. Deals here can work if you buy below the median.
- A median-priced home here would cost you about $355/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $171,000, 24% below the median.
- Rents are outrunning prices: the median 3-bedroom rent rose 6.0% from 2023 to 2024 while values rose 2.7%. That slowly improves the math for buyers.
- Rental vacancy is high at 9.7% (US: 5.7%), so we budgeted 10% vacancy instead of 5%. Price in a longer wait for tenants.
- Property taxes are heavy: the median bill is $3,025, about 1.35% of value versus 0.89% nationally. Confirm the bill after purchase, since it can reset.
Frequently asked questions
Does Lubbock pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $1,583/mo and the median home value is $223,600 (Census ACS 2024 1-year), a ratio of 0.71%. To pass at that rent, a home would need to cost about $158,000 or less.
What is the typical rent for a 3-bedroom in Lubbock?
The median gross rent for a 3-bedroom in Lubbock, TX is $1,583 a month, and $1,236 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 6.0% from 2023.
Can you cash flow a rental in Lubbock?
At the median price, not easily. With 20% down at 7.32% and realistic expenses, a $223,600 home renting for $1,583 loses about $355/mo. It breaks even at roughly $171,000.
How much cash do you need to buy a typical rental in Lubbock?
About $51,420: a 20% down payment of $44,720 plus closing costs we assume at 3% ($6,700). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Lubbock a good place to buy a first rental?
FirstDoor scores a median-priced home in Lubbock 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.
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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 22, 2026. Retrieved October 15, 2026. Insurance ($1,120/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.