Is Midland a Good Market for Rental Properties?

Is Midland a Good Market for Rental Properties? – Data & ROI Examples

If you’re considering investing in real estate, Midland, Texas continues to rank as one of the top-performing rental markets in the region. With strong demand, limited housing supply, and a growing workforce, investors are finding excellent opportunities to generate passive income and long-term equity.

In this blog, we’ll break down:

• Key rental market data for Midland

• Typical ROI for rental properties

• What makes Midland unique for investors

• Real-world examples of investment returns

📊 Midland Rental Market Snapshot – June 2025

Here’s a quick look at the current state of the rental market:

• Average Rent for Single-Family Home: $2,050/month

• Average Rent for 2 Bed, 2 Bath Fully Furnished: $2,400–$2,800/month

• Occupancy Rate: 93%

• Rental Vacancy Rate: ~4.5% (well below national average)

• Average Days on Market (Rental): 18 days

• Popular Rental Areas: Grassland Estates, Mission Estates, Green Hill Terrace, and Downtown Midland

Midland’s low vacancy rates and high demand, especially for fully furnished rentals and short-term corporate housing, continue to push rental prices upward.

💰 ROI Examples: What Can Investors Expect?

Here are two real-world-style scenarios to give you an idea of what ROI might look like in Midland today:

🏠 Example 1: Long-Term Rental – 3 Bed, 2 Bath Home

• Purchase Price: $290,000

• Monthly Rent: $2,050

• Mortgage (30-yr @ 6.75% with 20% down): ~$1,505/month

• Expenses (taxes, insurance, maintenance): ~$350/month

• Net Monthly Cash Flow: ~$195

• Annual Cash Flow: ~$2,340

• Annual ROI (Cash-on-Cash): ~4% – 6%

Add potential appreciation and tax benefits, and the overall return improves significantly over time.

🛋️ Example 2: Furnished Corporate Rental – 2 Bed, 2 Bath

• Purchase Price: $250,000

• Monthly Rent (Furnished): $2,500

• Mortgage + Expenses: ~$1,750/month

• Net Monthly Cash Flow: ~$750

• Annual Cash Flow: ~$9,000

• Annual ROI (Cash-on-Cash): 10% – 12%

Furnished rentals often yield higher returns, especially with demand from traveling nurses, oil & gas contractors, and relocations.

🧲 What Makes Midland a Strong Rental Market?

• Oil & Gas Industry Hub: A transient and specialized workforce creates constant demand for short- and long-term rentals.

• Low Inventory: High occupancy rates and low turnover mean stable tenants and consistent income.

• High Wages: Midland has one of the highest per capita incomes in Texas, supporting healthy rent-to-income ratios.

• Strong Job Market: Employment growth in energy, medical, education, and construction continues to drive housing demand.

• Favorable Landlord Laws: Texas remains landlord-friendly, helping investors manage risk.

⚠️ Things to Consider Before Investing

• Maintenance Costs: Midland’s dry, hot climate can affect roofs, HVAC systems, and landscaping.

• Property Management: Out-of-town investors should consider hiring a local, reputable property manager.

• Furnished vs. Unfurnished: Furnished units generate more income but also have higher turnover and upkeep needs.

• Location Matters: Proximity to hospitals, schools, and business centers increases desirability.

🏡 Is It the Right Time to Invest in Midland?

Yes—Midland remains a solid and often overlooked market for rental property investment, especially for those looking for strong cash flow, above-average appreciation potential, and long-term stability.

Whether you're a seasoned investor or just starting out, the Ben Kinney Team Midland can help you analyze deals, find high-ROI properties, and connect you with trusted local lenders and property managers.

💼 Ready to Start or Expand Your Rental Portfolio?

📞 Contact the Ben Kinney Team Midland today for a free investment consultation and a list of available rental-ready homes in the area. Let’s turn your real estate goals into real results.