Rental Property Calculator for
Houston Landlords.

Houston is the most heterogeneous rental market in the US. A 3/2 in Sugar Land and a 3/2 in Acres Homes share nothing operationally — different rents, different vacancy, different cap rates, different climate risk. Five things change the underwriting from a generic calculator default.

Flood zone is the most important rental variable.Pull the FEMA flood map (MSC.FEMA.gov) for the exact address before underwriting. A property in Zone AE requires flood insurance ($1,200–$4,000/year on top of standard property insurance), has lower buyer demand at future sale, and can attract tenants who specifically can't qualify elsewhere — sometimes higher tenant turnover. Some flood-zone rentals still cash flow well because they were bought at flood-zone discount and the rent supports the higher carrying cost. But you have to model the insurance honestly. A generic 0.5% insurance default on a $200k Houston rental misses real cost by $1,500–$3,000/year.

Hurricane insurance is a cost category, not a percentage. Texas Gulf Coast properties carry DP-3 policies with separate wind/hail riders and 2%-of-dwelling-value hurricane deductibles (not flat dollar). A $250k Houston rental quotes $2,200–$3,500/year for landlord coverage with hurricane rider. The same property in Oklahoma quotes $1,200–$1,800/year. Plug Houston-specific quotes into the calculator above as dollar figures. The 2024–2025 Gulf Coast insurance market has tightened — premiums climbed 20–35% post-Hurricane Beryl, and some carriers exited Texas entirely. Quote insurance before underwriting, not after.

Harris County property tax — major but slightly lower than Dallas.Harris County effective rate runs 2.1–2.3% of assessed value, fractionally below Dallas County. On a $230k stabilized rental at 2.2%, that's $5,060/year in tax. Houston also has MUD (Municipal Utility District) taxes in some areas that can add 0.5–1.5% on top of base. Pull the HCAD record for the exact effective rate including MUDs. The annual tax protest process is available and worth using — successful protests cut $200–$1,500/year off the tax bill.

Climate-specific maintenance reserves. Houston heat and humidity wear HVAC harder, increase mold risk, and require more frequent landscape / drainage work. Real maintenance reserve on a Houston rental is 5–7% of gross rent. Real CapEx reserve is 5–8% — HVAC systems in Houston last 10–14 years vs. 15–18 in milder climates, water heaters last shorter, exterior paint and siding deteriorate faster. Generic 2% maintenance / 0% CapEx defaults that work nowhere are especially wrong in Houston.

Sub-market choice drives every other input. Heights and Montrose rentals are appreciation plays — 2–4% cash-on-cash but 5–8% annual rent growth and strong appreciation. Working-class inner-loop zips (77017, 77023, 77033) are cash flow plays — 7–10% cash-on-cash but slower rent growth. Suburb (Sugar Land, Pearland, The Woodlands) is somewhere between. Pick your investment thesis first, then run the calculator with sub-market-specific inputs.

Houston rental underwriting checklist. FEMA flood map check on the address — non-negotiable. HCAD assessed value × 2.2% for property tax (verify MUD). Live Texas Gulf Coast insurance quote with hurricane rider — dollar figure, not percentage. Three live signed-lease comps in the same zip at similar bed/bath. Vacancy at 5–8% based on neighborhood. Maintenance + CapEx at 5%/5% minimum. Hurricane season operational buffer in year-one cash flow. Annual property tax protest built in. Hit those and Houston rentals produce reliable 6–10% cash-on-cash in the right sub-markets.