1st Advantage MortgageInvestors buying in Round Rock, TX are measured on the rent the property earns. Locally, median gross rent is $1,763 and median real estate taxes are $6,424 a year, which together set how much loan a rent can carry.
Market snapshot for Round Rock
A DSCR lender in Round Rock is comparing a rent against a payment, and the citywide benchmarks are a median gross rent of $1,763 and a median home value of $418,600. The rent figure is well above the Texas median of $1,403. By the simple measure of annual rent over home value, Round Rock sits at 5.1%, a thin gross ratio, which tells you purchase prices are high relative to rent. Lenders do not underwrite a ratio like that, but investors use it to decide where to look first.
| Indicator | Texas | Round Rock | Difference |
|---|---|---|---|
| Persons per household | 2.69 | 2.61 | |
| Share of homes detached | 64.4% | 64.4% | -0% |
| Long commuters, 45 min plus | 16.9% | 13.1% | -22% |
| Degree holders, age 25+ | 33.8% | 44.8% | +33% |
| Renters paying 30%+ of income | 51.7% | 50.8% | -2% |
| Units sitting vacant | 9.4% | 4.9% | -48% |
| Typical construction year | 1992 | 2002 | |
| Annual rent divided by value | 5.9% | 5.1% | -15% |
| Households that rent | 37.4% | 44.5% | +19% |
| Tax as a share of home value | 1.49% | 1.53% | +3% |
| Annual property tax bill, median | $4,232 | $6,424 | +52% |
| Household income, median | $78,476 | $99,287 | +27% |
| Typical owner-occupied value | $283,800 | $418,600 | +47% |
| Typical monthly rent | $1,403 | $1,763 | +26% |
| Residents (Census estimate) | 30,188,424 | 127,786 |
Renters make up 44.5% of households in Round Rock (about 19% above the Texas median of 37%), so rental demand is real but not overwhelming. Median household income of $99,287 (well above the Texas median of $78,476) sets the ceiling for rent growth, and 51% of renters already spend 30 percent or more of income on rent.
Housing mix and age in Round Rock
Detached houses are 64% of all units in Round Rock. That mix favors single-family rentals and makes small multifamily scarcer and, sometimes, more valuable. With a median build year of 2002, newer houses and townhomes set the tone, and homeowner association rules matter more than deferred maintenance.
The Census counts 5% of Round Rock housing units as vacant, with a rental vacancy figure of 4.3%.
Reading Round Rock as an investor
Yields near 5.1% make Round Rock a market for careful buyers. The ratio can still work, usually through a lower loan amount, a rent above the median or a property with several units. Newer construction (median built 2002) lowers near-term repair risk, but association rules and builder-grade finishes can limit rent growth. With about 44% of households renting, Round Rock has enough tenants to support investors without being dominated by them.
Carrying costs in Round Rock
Tax drag is easy to underestimate. Round Rock owners report a median $6,424 in annual real estate taxes, well above the Texas median of $4,232, an effective 1.53% of median home value. At the median rent that tax bill takes roughly 30% of a year's rent before insurance, dues or interest.
The federal National Risk Index scores Williamson County relatively moderate for overall risk, led by winter weather (very high), hail (relatively high) and cold waves (relatively high). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Williamson County, FEMA index | Level |
|---|---|
| Tornadoes exposure | Relatively High |
| Cold waves exposure | Relatively High |
| Hail exposure | Relatively High |
| Winter weather exposure | Very High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Insurance belongs in the ratio from day one, so get a landlord quote for the Round Rock address and ask about roof age, wind or hail deductibles and flood cover.
Rent math for Round Rock buyers
For a rough fit test, treat $1,763 as the rent and $535 as the monthly tax. The payment cannot exceed $1,763 at a 1.00 ratio, so $1,228 is left after taxes for interest, principal, insurance and any association dues, shrinking to $875 if the lender wants 1.25.
Landlord and short-term rental rules in Round Rock
We have not confirmed a city-specific rental registration or nightly-stay permit program for Round Rock, so check with the city and with Williamson and Travis Counties before you buy, and look at any HOA or condominium rules that can be stricter than the city's. Nightly stays carry state tax in Texas. Texas imposes a state hotel occupancy tax on rentals of 29 days or less, collected by the owner unless a booking platform collects for the owner, and cities, counties and special districts can add a separate local hotel tax that the owner must register for and remit.
Deposit limits are set by statute in Texas (Tex. Prop. Code §§ 92.103, 92.104, 92.107), and for Round Rock landlords the rule reads: No statutory cap. Landlord entry in Texas: No statute; entry rules come from the lease. For month-to-month tenants in Texas, the landlord's termination notice is 1 month (unless the lease says otherwise).
Comparing Round Rock with surrounding markets
Killeen's median home value of $215,400 is the group's floor and Austin's $555,300 its ceiling, while Round Rock is $418,600.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| San Marcos | 69% | $4,774 | $310,400 | 70,897 | $1,322 |
| Killeen | 51% | $3,275 | $215,400 | 158,159 | $1,208 |
| Austin | 57% | $8,024 | $555,300 | 979,539 | $1,729 |
| Round Rock | 44% | $6,424 | $418,600 | 127,786 | $1,763 |
Who rents in Round Rock
The self-employed share of the workforce is 9.9%, and those owners tend to be exactly the buyers DSCR financing was built for. Around the edges, government workers are about 15% of employment, 45% of adults hold a bachelor's degree or higher and 13% of commuters travel 45 minutes or more.
The Round Rock area is home to Texas State University and Texas State University Round Rock Campus. Students and employees at schools like these are a recurring source of rental demand. Access runs through interstate access via I-35, which shapes where commuters want to live and how long a showing takes.
From a Round Rock listing to a loan
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Round Rock address, check them in the calculator, and begin your application or get a quote first.
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Where these facts come from
- Hotel tax FAQ for short-term rentals
- 2020 to 2024 ACS data used for Round Rock
- FEMA county hazard table
- Wikipedia article, Round Rock, Texas
- Deposit statute: Tex. Prop. Code §§ 92.103, 92.104, 92.107
- For nightly stays in Round Rock: Texas Comptroller, hotel occupancy tax
Census figures are 2020 to 2024 ACS five-year estimates for Round Rock and carry margins of error. Landlord rules for Round Rock rest on Texas statutes and the CC BY 4.0 RedFlagLease dataset. Verified October 2026. Ordinances and statutes change, so confirm before acting.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Which rent counts when I finance a Round Rock property?
A signed lease or the appraiser's rent schedule supplies the rent, depending on the program, and $1,763 is the Census median for Round Rock renters, only a benchmark.
What payment can a Round Rock rent support?
Every piece of PITIA is in the denominator. With $1,763 in rent, a 1.25 lender allows about $1,410, leaving $875 after median taxes of $535 a month.
What do Round Rock owners pay in real estate taxes?
About $6,424 a year at the median, which is 1.53% of value and well above the Texas median of $4,232. Reassessment after a purchase can move that number, so get an estimate for the actual price.
Can nightly stays at a Round Rock property support a DSCR file?
It depends on the program and on local law. A Round Rock owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
What are the security deposit rules for a Texas landlord?
Texas limits deposits this way: No statutory cap. Return is due within 30 days after the tenant leaves. The governing section is Tex. Prop. Code §§ 92.103, 92.104, 92.107.
What hazard risk does Round Rock carry for investors?
The county scores relatively moderate overall in FEMA's index, with winter weather leading. Parcel-level flood maps and a real insurance quote give the answer that counts.
Do I need an LLC to buy a rental in Round Rock?
Not required. An LLC borrower is routine for investor programs, with entity paperwork and a guaranty. Form the company before you go under contract in Round Rock.