As the largest contiguous state, it’s no surprise that Texas is home to many top rental markets. But what are the best places to invest in real estate in the Texas housing market in 2020? According to the PwC, that title belongs to the Dallas-Fort Worth metro area (outranked only by the Austin real estate market). So, why is the Fort Worth real estate market a top location in Texas in 2020? In today’s blog, we’ll answer this question by looking at three different factors:
- Investment data for the Fort Worth real estate market
- 5 Fort Worth real estate trends
- Data for the best neighborhoods in Fort Worth for traditional and Airbnb real estate investing
You can learn more about the Dallas housing market by reading: Dallas Housing Market Predictions 2020.
Fort Worth Real Estate Market 2020: Mashvisor’s Investment Data
Let’s first take a look at Fort Worth’s housing market data. This data will paint a clear picture as to why you should invest in Fort Worth real estate:
- Median Property Price: $291,257
- Price per Square Foot: $139
- Price-to-Rent Ratio: 15
- Traditional Rental Income: $1,629
- Traditional Cap Rate / Cash on Cash Return: 1.3%
- Airbnb Rental Income: $2,925
- Airbnb Cap Rate / Cash on Cash Return: 5.2%
- Airbnb Occupancy Rate: 55.5%
Where was this real estate data obtained from? Right here, from Mashvisor! Mashvisor’s real estate investment tools display the investment data of any rental market in 2020. To learn more about Mashvisor’s products, click here!
Fort Worth Real Estate Market Trends for 2020
How strong is the Forth Worth real estate market? This is best answered by exploring a few key Fort Worth real estate trends:
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Traditional and Airbnb Fort Worth Rental Properties Will Be Lucrative
Investing in Fort Worth real estate will be profitable in 2020. As seen from Mashvisor’s data, both traditional and Airbnb Fort Worth rental properties will make money thanks to the high average rental income and return on investment. But it’s important to note that the above figures are just that- averages. Fort Worth real estate investors who know where to look and what tools to use can find much more profitable investment properties in 2020.
The data also makes it clear why the Fort Worth real estate market is one of the best places to invest in Texas. The average income property in Fort Worth is more profitable when compared to the average Texas income property. For instance, Fort Worth’s return on investment (ROI) for long-term rental properties is 1.5 times greater than the Texas average. Airbnb Fort Worth’s ROI is also 2 percent higher than the Texas average.
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Fort Worth House Prices Will Be Affordable
Profitability is, of course, important for successful real estate investing. However, there is another, equally important element: affordability. Fortunately, the Fort Worth real estate market has both.
As seen earlier, the median price of a Forth Worth property is $291,257. This is lower than the Texas real estate market median of $316,517. Likewise, Fort Worth house prices are lower than the national median price of $299,400.
What’s even more impressive is how affordable the city’s best neighborhoods are. According to Mashvisor’s neighborhood analysis, 5 of the 7 best neighborhoods are below $200,000 (check them out in the last section of this blog!). As a result, a Fort Worth investor will have no issue finding an affordable investment property in 2020.
Related: Invest in the 5 Cheapest Housing Markets in 2020
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Properties in the Fort Worth Real Estate Market Will Appreciate
The Fort Worth real estate market 2020 will also benefit from high property appreciation. According to NeighborhoodScout, Fort Worth was in the top 10% for real estate appreciation in the last decade. This positive trend is expected to continue in 2020. According to Zillow, Fort Worth real estate will appreciate by 2.9% during the year. Fort Worth rental properties will, therefore, benefit from both high rental income and appreciation in 2020.
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New Fort Worth Airbnb Laws Will Likely Be Established in 2020
We’ve talked about how profitable Airbnb Fort Worth is. So, is it legal? Yes, Airbnb non-owner occupied rentals can operate in the city. However, there are zoning laws that real estate investors must know about. Most importantly, Fort Worth short-term rental properties are not allowed in residential neighborhoods. Instead, they are only permitted in commercial and industrial areas. Also, Airbnb Fort Worth properties are currently not subject to the city’s hotel tax.
However, recent ordinance proposals suggest that new Airbnb regulations will be passed in 2020. Above all, the ordinance draft proposes the following:
- Payment of the city’s hotel occupancy tax
- Permit requirements
- Maximum occupancy limits
We recommend that Airbnb hosts in the Fort Worth real estate market monitor any developments throughout 2020.
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There Will Be High Rental Demand in the Fort Worth Housing Market
Most importantly, demand will be high in the Fort Worth real estate market 2020. There are many reasons why. For instance, Fort Worth is projected to have high economic growth in the next 10 years. The tenant pool will continue to grow thanks to the low cost of living as well. According to NerdWallet, Fort Worth’s cost of living is lower than that of the Austin real estate market, Dallas real estate market, Houston housing market, and many others. Even with such affordability, over 43% of the city’s residents rent out a Fort Worth investment property.
Even with the high demand for rental property, those interested in Fort Worth real estate investing won’t face too much competition. That’s because the Fort Worth Texas real estate market will be a cool buyer’s market in 2020. In other words, buying an investment property in Fort Worth is a smart move in 2020.
Related: Will the 2020 US Housing Market Be a Seller’s Market or a Buyer’s Market?
Best Neighborhoods in Fort Worth: Traditional Rental Strategy
So, where should you buy Fort Worth houses for sale? After all, there are many neighborhoods in the Fort Worth real estate market. However, we’ll show you the best of the best in the city. According to Mashvisor, the best neighborhoods for traditional real estate investing are:
Village Creek
- Median Property Price: $306,950
- Price per Square Foot: $127
- Price-to-Rent Ratio: 16
- Traditional Rental Income: $1,560
- Traditional Cap Rate / Cash on Cash Return: 4.0%
West Morningside
- Median Property Price: $181,543
- Price per Square Foot: $124
- Price-to-Rent Ratio: 10
- Traditional Rental Income: $1,567
- Traditional Cap Rate / Cash on Cash Return: 3.3%
Como
- Median Property Price: $137,477
- Price per Square Foot: $101
- Price-to-Rent Ratio: 10
- Traditional Rental Income: $1,108
- Traditional Cap Rate / Cash on Cash Return: 2.9%
Hillside Morningside
- Median Property Price: $165,302
- Price per Square Foot: $117
- Price-to-Rent Ratio: 12
- Traditional Rental Income: $1,148
- Traditional Cap Rate / Cash on Cash Return: 2.8%
Best Neighborhoods in Fort Worth: Airbnb Rental Strategy
What about Airbnb Fort Worth? According to Mashvisor, the best neighborhoods in the Fort Worth real estate market for the Airbnb rental strategy are:
Basswood Village
- Median Property Price: $278,305
- Price per Square Foot: $127
- Price-to-Rent Ratio: 14
- Airbnb Rental Income: $7,382
- Airbnb Cap Rate / Cash on Cash Return: 16.7%
- Airbnb Occupancy Rate: 65%
Como
- Median Property Price: $137,477
- Price per Square Foot: $101
- Price-to-Rent Ratio: 10
- Airbnb Rental Income: $3,202
- Airbnb Cap Rate / Cash on Cash Return: 14.5%
- Airbnb Occupancy Rate: 54.7%
Historic Southside
- Median Property Price: $145,978
- Price per Square Foot: $183
- Price-to-Rent Ratio: 12
- Airbnb Rental Income: $2,782
- Airbnb Cap Rate / Cash on Cash Return: 14.5%
- Airbnb Occupancy Rate: 51%
Marine Park
- Median Property Price: $166,250
- Price per Square Foot: $161
- Price-to-Rent Ratio: 16
- Airbnb Rental Income: $3,064
- Airbnb Cap Rate / Cash on Cash Return: 12.9%
- Airbnb Occupancy Rate: 66.3%
Be sure to check what zoning regulations apply to these neighborhoods.
The Fort Worth real estate market is top-tier in Texas for 2020. To start searching for a Fort Worth real estate investment for sale, CLICK HERE to start your 14-day FREE trial with Mashvisor!
