Magnolia, TX Rental Market for Investors
An estimated 44% of Magnolia's active listings could cash-flow as a short-term rental — here's what the numbers say for investors, as of October 2026.
As of October 2026, we analyzed 986 active for-sale homes in Magnolia, Texas. The typical listing is priced at $374,990 and is projected to generate about $39,058 a year as a short-term rental.
After setting aside an estimated 20% for operating costs, an estimated 43.8% of those homes could still cover an investor mortgage payment on short-term-rental income — below the 53.1% median across the 200 major metros we track, ranking Magnolia #130 of 200 for cash-flow potential.
On market momentum: homes in Magnolia sit a median of 61 days on the market, and 27% of active listings came on in just the last 30 days — a steadily paced market, which shapes how much room there is to negotiate.
For a DSCR loan — which qualifies on the property's rental income rather than your personal income — Magnolia runs tighter once operating costs are accounted for: many listings need a below-median price, a stronger short-term-rental setup, or more money down before the income covers the payment. It's a market where running the numbers property-by-property matters.
What actually works in Magnolia
Magnolia works for investors, but the window is specific: 91 of the 518 Magnolia homes, condos and townhomes we can price confidently clear a DSCR of 1.25. Nine in ten of them are priced under $350,000.
| Price | 3 bed | 4 bed | 5 bed |
|---|---|---|---|
| $150k–$250k | 88%1.56 | 90%1.74 | — |
| $250k–$350k | 34%1.18 | 39%1.21 | — |
| $350k–$500k | 3%0.87 | 3%0.86 | 19%1.02 |
| $500k+ | 0%0.55 | 0%0.55 | 0%0.54 |
Darker means a larger share of that group cash-flows. “—” means fewer than 8 active listings — too few to draw a conclusion from.
Magnolia in full
| Active for-sale homes analyzed | 986 |
|---|---|
| Median list price | $374,990 |
| Median projected STR revenue (annual, gross) | $39,058 |
| Median average daily rate (ADR) | $234 |
| Median occupancy | 45% |
| Median beds | 4 |
| Median size | 2,322 sqft |
| Estimated cash-flow-positive share | 43.8% |
| Median days on market | 61 days |
| New listings (last 30 days) | 27.1% of active |
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Estimates for educational purposes. Final terms subject to credit, property & program approval.
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Prefer to talk now? Call or text Chad: 858-353-8331.