1st Advantage MortgageAmarillo is a TX market where the rent-to-payment ratio decides the loan. Median rent is $1,092, median home value is $196,900 and 40% of households rent.
Amarillo rental market at a glance
Start with the two numbers every DSCR file turns on. Rent in Amarillo runs a median $1,092 a month (about 22% below the Texas median of $1,403), and the median owner-occupied home is worth $196,900. The gross rent-to-value ratio for Amarillo works out to 6.7% (twelve months of median rent divided by median value), close to the range investors often call workable. The figure combines all rental types with all owner-occupied homes, so it is a screening number and not an appraisal.
| Indicator | Texas | Amarillo | Difference |
|---|---|---|---|
| Annual property tax bill, median | $4,232 | $3,000 | -29% |
| Household income, median | $78,476 | $65,912 | -16% |
| Typical owner-occupied value | $283,800 | $196,900 | -31% |
| Typical monthly rent | $1,403 | $1,092 | -22% |
| Persons per household | 2.69 | 2.50 | |
| Share in 2-4 unit buildings | 5.3% | 4.5% | -14% |
| Long commuters, 45 min plus | 16.9% | 8.0% | -53% |
| Workers on their own account | 10.5% | 10.3% | -1% |
| Renters paying 30%+ of income | 51.7% | 47.4% | -8% |
| Units sitting vacant | 9.4% | 10.6% | +13% |
| Typical construction year | 1992 | 1973 | |
| Annual rent divided by value | 5.9% | 6.7% | +12% |
| Households that rent | 37.4% | 40.3% | +8% |
| Tax as a share of home value | 1.49% | 1.52% | +2% |
| Residents (Census estimate) | 30,188,424 | 201,885 |
The renter share is 40.3% in Amarillo, close to the Texas median of 37%, a sizable rental market. Household income runs a median $65,912 (about 16% below the Texas median of $78,476), while 47% of renters spend 30 percent or more of income on housing.
Housing mix and age in Amarillo
About 70% of Amarillo's housing is detached single-family, which means a typical rental purchase is a house with its own roof, yard and repair schedule. Median year built is 1973, so many homes are reaching the age when major systems need replacing.
Use vacancy as a reality check: 11% of all units are vacant in Amarillo, and the rental vacancy rate is 11.5%.
Underwriting angles in Amarillo
Amarillo's 6.7% yield is workable. Expect most single-family rentals to land near the lender's minimum ratio, so details like taxes after reassessment matter. With a 1973 median build year, the question for each property is when the roof and HVAC were last replaced. With about 40% of households renting, Amarillo has enough tenants to support investors without being dominated by them.
The payment side of the Amarillo ratio
The Census reports median real estate taxes paid of $3,000 in Amarillo, well below the Texas median of $4,232. Against the median value that is an effective rate of roughly 1.52%, compared with 1.49% for Texas as a whole. Set beside the median rent, the tax alone consumes about 23% of annual rent.
The federal National Risk Index scores Potter County relatively moderate for overall risk, led by winter weather (very high), hail (very high) and tornadoes (relatively high). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Potter County, FEMA index | Level |
|---|---|
| Strong wind exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Hail exposure | Very High |
| Winter weather exposure | Very High |
| Social vulnerability score | Relatively High |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Amarillo exclusions before trusting a premium estimate.
Rent math for Amarillo buyers
The quick test for Amarillo: rent of $1,092 divided by a 1.25 ratio allows a total payment of $874, and subtracting $250 in monthly taxes leaves $624 for the loan, insurance and dues. At 1.00 the allowance is the full $842.
Registration, deposits and nightly stays in Amarillo
Rental registration, inspection and nightly-stay rules differ by city, and we have not verified Amarillo's from a municipal source. A short call to the city and Potter and Randall Counties before you make an offer is cheap insurance. Guests who book by the night in Amarillo are taxed under state law as follows. 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.
For a Amarillo lease, the Texas deposit rule is No statutory cap, as set out in Tex. Prop. Code §§ 92.103, 92.104, 92.107. On entering a unit, Texas says: 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).
Amarillo in a Texas comparison
Other Texas markets on this site show median values from $310,400 (San Marcos) to $418,600 (Round Rock); Amarillo is $196,900.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Dallas | 58% | $5,075 | $320,700 | 1,307,930 | $1,472 |
| San Marcos | 69% | $4,774 | $310,400 | 70,897 | $1,322 |
| Round Rock | 44% | $6,424 | $418,600 | 127,786 | $1,763 |
| Amarillo | 40% | $3,000 | $196,900 | 201,885 | $1,092 |
What fills Amarillo rentals
Self-employed workers, incorporated or not, make up 10.3% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. Around the edges, government workers are about 16% of employment, 27% of adults hold a bachelor's degree or higher and 8% of commuters travel 45 minutes or more.
The Amarillo area is home to Amarillo College, Wayland Baptist University, Texas Tech University Health Sciences Center and Texas Tech University Health Sciences Center Amarillo Campus. Students and employees at schools like these are a recurring source of rental demand. Transportation links include interstate access via I-40 and I-27 and air service through Rick Husband Amarillo International Airport and Tradewind Airport. Easy highway and air access helps both tenant commutes and remote ownership.
From a Amarillo listing to a loan
Bring the Amarillo numbers to a loan officer: the rent, the taxes, the insurance and your reserves. Apply online or ask for a quote, and use the calculator to preview the ratio.
More Texas markets
- All Texas DSCR loans
- DSCR loans in Round Rock, TX
- DSCR loans in San Marcos, TX
- DSCR loans in Dallas, TX
- Every market we cover
Sources and data notes
- FEMA hazard ratings for Potter and Randall Counties
- Amarillo on Wikipedia
- Texas landlord deposit rules, Tex. Prop. Code §§ 92.103, 92.104, 92.107
- State rule cited for Amarillo hosts: Texas Comptroller, hotel occupancy tax
- Lodging tax reference: Hotel tax FAQ for short-term rentals
- 2020 to 2024 ACS data used for Amarillo
We took the Amarillo data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Texas sections. Our check date is October 2026, so look for newer Amarillo rules before you commit.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Lease or market rent: what counts in Amarillo?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Amarillo median is $1,092.
Do taxes and insurance count in the Amarillo DSCR ratio?
Yes, the payment includes principal, interest, taxes, insurance and association dues. At the Amarillo median rent of $1,092, a 1.25 ratio allows about $874 in total payment, of which roughly $250 a month goes to median taxes.
What does Potter and Randall Counties charge in property tax, in practice?
About $3,000 a year at the median, which is 1.52% of value and well below the Texas median of $4,232. Reassessment after a purchase can move that number, so get an estimate for the actual price.
Will a lender count nightly rental income at a Amarillo property?
It depends on the program and on local law. A Amarillo owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
When must a Amarillo landlord return a deposit?
Start with Tex. Prop. Code §§ 92.103, 92.104, 92.107. The limit: No statutory cap. Return window: 30 days. Talk to a Texas attorney for a lease form that matches.
Does hazard risk affect a Amarillo DSCR loan?
Overall risk is rated relatively moderate for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Do I need an LLC to buy a rental in Amarillo?
It is optional. Lenders will close in a properly formed LLC and generally want the members to guarantee. Ask your accountant how a TX entity would be taxed.