Denton
Investment Analysis

Denton, TX
Investor Report

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

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43
Investment Score
Buy
Cap Rate (Est.)
2.9%
Gross Yield
4.8%
P/R Ratio
16.5x
YoY Growth
-4.5%
Median Home Price
$372,000
Average Rent (1BR)
$1,500/mo
Median Income
$73,051
Population
158,361

Investment Breakdown

51
Value Score
5
Growth Score
71
Safety Score
47
Afford Score

Denton has a price-to-rent ratio of 16.5x, which indicates buying is moderately favorable.

The estimated cap rate of 2.9% is below average, typical of appreciation-focused markets.

Year-over-year price growth of -4.5% suggests a cooling market.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $1,500
Annual Gross $18,000

Est. Monthly Expenses

Property Tax (~1.5%) -$465
Insurance (~0.5%) -$155
Maintenance (~1%) -$310
Est. Net Cash Flow $570/mo

Price Forecast 2026โ€“2028

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

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$348K2027$384Kโ–ฒ 10.4%2028$393Kโ–ฒ 13.0%20232024Now
$413K$330K
Current
$372K
2026
Projected
$384K
โ†‘ 10.4% by 2027
Projected
$393K
โ†‘ 13.0% by 2028
5yr CAGR:+4.7%
Confidence:Low
Rยฒ:0.27
โ–ผ

For anyone asking "will Denton home prices drop" through 2026-2028, the data suggests a period of stabilization rather than a sharp correction. The current median home price of $347,892 recently saw a -4.3% YoY change, but this should be viewed against a healthier five-year gain of 27.5% and a steady 4.9% CAGR. With a price-to-rent ratio of 17.8x, just below the national average, the market remains relatively balanced for both owners and renters. The "Neutral" verdict and a risk grade of A indicate that while explosive growth has paused, the fundamentals supporting the Denton housing market forecast remain sound.

Local economic drivers will be key; expansion at the University of North Texas and Texas Woman's University, alongside growth in the North Texas logistics corridor, should sustain demand despite broader affordability challenges. Days on market hovering around 58 days signals a more deliberate pace, giving buyers negotiation room without indicating a fire sale. While the market temperature of 58/100 reflects cooling from the post-pandemic peak, inventory levels and Denton's relative affordability compared to Dallas proper will likely prevent drastic declines. We expect price growth to modestly track inflation, with potential for renewed appreciation if mortgage rates ease.

Looking toward Denton real estate Denton 2027, the outlook is one of cautious optimism. The $272,945 to $381,573 price range over the last five years provides a clear channel for valuation; prices are likely to trade within these historical bands. Investors may find the $1,500/mo median rent appealing given the lower entry point compared to the metro core, but the era of double-digit appreciation is likely over for this cycle. Ultimately, Denton presents a stable, lower-risk environment for 2026-2028, favored by long-term holders rather than short-term flippers.

Projected Cap Rate (2027)
2.9%
5yr CAGR
+4.7%

Job Market

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

Healthcare

70
Score
Good

Risk Factors

Declining Prices

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 97.1%
Months Supply 5.1
Price Drops 30%
Gone in 2 Wks 11%

Market Position

Affordability Average
Safety Very Safe

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Denton.

Total ROI
-106%
on $74,400 invested
Annual ROI
NaN%
compounded
Total Return
-$78,698
appreciation + cashflow
Mo. Cash Flow
-$1,445
year 1 estimate
Equity Growth Over 5 Years
Y177kY281kY384kY488kY592k
Appreciation
$0
Cash Flow
-$78,698
Final Equity
$91,840

* Estimates based on 0.0% 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 Denton

Property

Purchase Price$372,000
Monthly Rent$1,500
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$1,263
Monthly Cash Flow
-$15,156/ year
-20.4%
Cash-on-Cash
2.0%
Cap Rate

Monthly Breakdown

+ Rental Income$1,500
โˆ’ Mortgage (P&I)$1,881
โˆ’ Property Tax$372
โˆ’ Insurance$125
โˆ’ Maintenance$310
โˆ’ Vacancy Loss$75
= Net Cash Flow-$1,263

Investment Summary

Down Payment
$74,400
Loan Amount
$297,600
Total Monthly Expenses
$2,763
Gross Yield
4.8%

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