Is Now a Good Time to Invest in Dallas's Rental Market?

By Steven – Managing Partner at Refind Realty

Hi, I'm Steven from Refind Realty. One question I’ve been getting a lot lately is: “Is now really a smart time to invest in rental property here in Dallas?” I get it. With rising rates, shifting demand, and mixed media messages, it can be hard to read the market.

But here’s the thing. If you understand the local numbers and make smart moves, Dallas is still one of the best places in the country to build rental income.

Let’s break it down.

Why Investors Still Choose Dallas

Population Growth: Dallas-Fort Worth has been one of the fastest-growing metros in the U.S. for several years. More people equals more demand for rentals.

High Rental Demand: Inventory for affordable rentals remains low, especially in key neighborhoods like Frisco, Plano, and Arlington.

Strong Job Market: With major employers expanding in tech, healthcare, and logistics, renters keep moving here for opportunity.

Landlord-Friendly Laws: Texas remains one of the most investor-friendly states, with policies that favor property owners.

What Are Investors Seeing in 2025?

As of Q1 2025:

• Median Rent for Single-Family Homes in DFW: $2,180 (up 6.3% YoY)

• Average Days on Market for Rentals: 19

• Vacancy Rates: 4.8% and trending downward

• New Multifamily Starts: Slowing, which is good news for single-family investors

We’re seeing more renters shift from apartments to homes, especially families who are priced out of buying but still want space.

Neighborhoods to Watch

If you’re looking for rental growth potential, here are a few spots I’ve been watching for clients:

• East Dallas (Casa View, Buckner Terrace): Lower price points with growing demand

• North Fort Worth: Consistent appreciation and strong school districts

• Grand Prairie & Mesquite: Great rental yields with lower entry costs

What to Consider Before Jumping In

1. Financing Has Tightened: Higher rates mean you’ll want to negotiate hard and run real numbers on cash flow.

2. Property Management is Key: If you’re not ready to be hands-on, consider hiring a local manager to help with tenant screening and repairs.

3. Know the Local Rules: Dallas doesn’t have rent control, but different cities in DFW may have their own short-term rental laws or registration requirements.

So, Should You Invest Right Now?

If you’re looking long-term, the short answer is yes.

Dallas continues to offer strong fundamentals: job growth, population growth, limited rental supply, and friendly laws. Smart investors are finding deals, especially in areas just outside the urban core.

Whether you’re brand new to investing or looking to expand your portfolio, I’m here to help you evaluate neighborhoods, run rental comps, and connect with local lenders and property managers.

Let’s talk about how we can make your investment goals real.

FAQs

1. Is Dallas a good city for real estate investment in 2025?
Yes. Strong population growth, job expansion, and rising rents make Dallas one of the top markets for rental income.

2. What types of properties are best for investment in Dallas?
Single-family homes and small multifamily properties in suburban areas offer solid cash flow and appreciation potential.

3. Are rental prices still going up in Dallas?
Yes. Rents are up over 6% year-over-year in many parts of the DFW area.

4. Do I need a property manager?
If you’re not local or don’t want to manage tenants, hiring a manager can help protect your investment and reduce stress.

5. What are the best Dallas suburbs for investors?
Look at Grand Prairie, Mesquite, North Fort Worth, and East Dallas for high rental demand and affordable pricing.

6. Can I invest in Dallas real estate remotely?
Absolutely. Many of my clients live out-of-state and buy investment properties here with the help of a local team.

Download the Lone Star App here: https://lonestarliving.hsidx.com/@sthomas
You're Always Home With Refind Realty!