Abilene
Investment Analysis

Abilene, TX
Investor Report

Comprehensive real estate investment analysis with cap rates, rental yields, and risk assessment.

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61
Investment Score
Strong Buy
Cap Rate (Est.)
2.5%
Gross Yield
4.2%
P/R Ratio
14.9x
YoY Growth
+2.5%
Median Home Price
$250,000
Average Rent (1BR)
$876/mo
Median Income
$57,953
Population
130,093

Investment Breakdown

55
Value Score
76
Growth Score
55
Safety Score
60
Afford Score

Abilene has a price-to-rent ratio of 14.9x, which indicates buying is significantly better than renting.

The estimated cap rate of 2.5% is below average, typical of appreciation-focused markets.

Year-over-year price growth of +2.5% indicates stable market conditions.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $876
Annual Gross $10,512

Est. Monthly Expenses

Property Tax (~1.5%) -$313
Insurance (~0.5%) -$104
Maintenance (~1%) -$208
Est. Net Cash Flow $251/mo

Price Forecast 2026โ€“2028

๐Ÿ”ฎ Abilene Price Forecast 2026โ€“2028

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$201K2027$213Kโ–ฒ 5.6%2028$220Kโ–ฒ 9.3%20232024Now
$231K$180K
Current
$250K
2026
Projected
$213K
โ†‘ 5.6% by 2027
Projected
$220K
โ†‘ 9.3% by 2028
5yr CAGR:+5.3%
Confidence:Moderate
Rยฒ:0.80
โ–ผ

For those eyeing the Abilene housing market forecast for the coming years, the data paints a picture of stability rather than explosive growth. With a median home price sitting at $201,492 and a price-to-rent ratio of 16.9x, the market remains more accessible than the national average, supporting a "NEUTRAL" buy/rent verdict. The local economy, anchored by Dyess Air Force Base and a growing healthcare sector, provides steady demand, though the 19 days on market indicates a pace that is competitive but not frenzied. This suggests that while inventory won't flood the market, buyers won't face the intense bidding wars seen in larger metros.

When asking "will Abilene home prices drop," the historical context suggests moderation over decline. The 5-year price change of 30.4% and a 5-year CAGR of 5.4% show consistent appreciation, but the current YoY price change has cooled to 3.0%. This deceleration is a healthy sign, moving toward sustainable growth. Affordability remains a key draw, but national interest rate trends will influence how much purchasing power local buyers retain. For those looking at Abilene real estate Abilene 2027, the risk grade of "A" signals a secure investment environment, though appreciation rates are unlikely to return to the highs seen in the early 2020s.

Looking toward 2028, the market temperature of 69/100 indicates a balanced environment that favors neither extreme buyer nor seller leverage. The city's growth is tied to its infrastructure and ability to attract new industries beyond its traditional bases, which will be crucial for sustaining housing demand. While the median rent at $876/mo offers a yield opportunity for investors, the flat price trajectory suggests equity growth will be gradual. Ultimately, Abilene represents a low-volatility market; it is unlikely to crash, but it also won't be a top performer for speculative gains, making it ideal for long-term holders seeking steady equity rather than quick flips.

Projected Cap Rate (2027)
3.1%
5yr CAGR
+5.3%

Job Market

Unemployment 4.0%
National avg: 3.7%
Job Growth (YoY) +3.2%

Healthcare

70
Score
Good

Risk Factors

Low Risk Profile

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 97.0%
Months Supply 1.8
Price Drops 17%
Gone in 2 Wks 44%

Market Position

Affordability Below Avg
Safety Average

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Abilene.

Total ROI
-55%
on $50,000 invested
Annual ROI
-14.8%
compounded
Total Return
-$27,579
appreciation + cashflow
Mo. Cash Flow
-$1,097
year 1 estimate
Equity Growth Over 5 Years
Y158kY267kY376kY486kY595k
Appreciation
$33,543
Cash Flow
-$61,121
Final Equity
$95,263

* Estimates based on 2.5% annual appreciation, 3% rent growth, 5% vacancy. Does not include closing costs, tax benefits, or capital gains tax. For illustrative purposes only.

Rental Investment Calculator Estimate your monthly cashflow

Rental Income Estimator

Pre-filled for Abilene

Property

Purchase Price$250,000
Monthly Rent$876
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$1,015
Monthly Cash Flow
-$12,183/ year
-24.4%
Cash-on-Cash
1.2%
Cap Rate

Monthly Breakdown

+ Rental Income$876
โˆ’ Mortgage (P&I)$1,264
โˆ’ Property Tax$250
โˆ’ Insurance$125
โˆ’ Maintenance$208
โˆ’ Vacancy Loss$44
= Net Cash Flow-$1,015

Investment Summary

Down Payment
$50,000
Loan Amount
$200,000
Total Monthly Expenses
$1,891
Gross Yield
4.2%

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with qualified professionals. Data sources include Zillow, Census Bureau, and BLS. Cap rates and yields are estimates based on available data.

Last updated: March 2026