Magnolia, TX Rental Market for Investors
An estimated 38% of Magnolia's active listings could cash-flow as a short-term rental — here's what the numbers say for investors, as of August 2026.
Homes in Magnolia that pencil right now
A sample of active Magnolia listings whose DSCR clears 1.25 using short-term rental income projections we accept as a direct lender. These are spread across the price range, not ranked, and current as of August 2026.
$219,888DSCR 2.085 bed · 2.5 bath · 1,958 sqft
- STR revenue
- $46,626/yr
- Est. interest-only payment
- $1,497/mo
On the market 10 days · Listed by Elite Texas Properties
Scout this home & market: 5-bed house in Magnolia
$245,000DSCR 1.404 bed · 2 bath · 1,386 sqft
- STR revenue
- $42,995/yr
- Est. interest-only payment
- $2,054/mo
On the market 138 days · Listed by Blair Realty Group
Scout this home & market: 4-bed house in Magnolia
$249,900DSCR 1.534 bed · 2.5 bath · 1,710 sqft
- STR revenue
- $40,076/yr
- Est. interest-only payment
- $1,751/mo
On the market 33 days · Listed by Entera Realty Llc
Scout this home & market: 4-bed house in Magnolia
$249,900DSCR 1.464 bed · 2.5 bath · 1,834 sqft
- STR revenue
- $40,300/yr
- Est. interest-only payment
- $1,835/mo
On the market 186 days · Listed by RE/MAX Partners
Scout this home & market: 4-bed house in Magnolia
$250,000DSCR 1.353 bed · 2 bath · 1,749 sqft
- STR revenue
- $44,030/yr
- Est. interest-only payment
- $2,172/mo
On the market 38 days · Listed by Exp Realty LLC
Scout this home & market: 3-bed house in Magnolia
$265,000DSCR 1.353 bed · 2 bath · 1,610 sqft
- STR revenue
- $44,416/yr
- Est. interest-only payment
- $2,195/mo
On the market 45 days · Listed by The Jake Moore Group
Scout this home & market: 3-bed house in Magnolia
$265,000DSCR 1.263 bed · 2 bath · 1,624 sqft
- STR revenue
- $43,434/yr
- Est. interest-only payment
- $2,307/mo
On the market 93 days · Listed by Greenwood King Properties
Scout this home & market: 3-bed house in Magnolia
$269,900DSCR 1.473 bed · 2 bath · 1,605 sqft
- STR revenue
- $42,739/yr
- Est. interest-only payment
- $1,944/mo
On the market 11 days · Listed by Entera Realty Llc
Scout this home & market: 3-bed house in Magnolia
As of August 2026, we analyzed 1,020 active for-sale homes in Magnolia, Texas. The typical listing is priced at $385,000 and is projected to generate about $38,147 a year as a short-term rental.
After setting aside an estimated 20% for operating costs, an estimated 38.2% of those homes could still cover an investor mortgage payment on short-term-rental income — below the 52.5% median across the 200 major metros we track, ranking Magnolia #143 of 200 for cash-flow potential.
On market momentum: homes in Magnolia sit a median of 51 days on the market, and 32% 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
Cash-flow is the exception rather than the rule in Magnolia right now: 81 of the 617 Magnolia homes, condos and townhomes we can price confidently clear a DSCR of 1.25. Nine in ten of them are priced under $329,000.
| Price | 3 bed | 4 bed | 5 bed |
|---|---|---|---|
| $150k–$250k | 88%1.42 | 100%1.55 | — |
| $250k–$350k | 31%1.15 | 28%1.15 | 69%1.49 |
| $350k–$500k | 0%0.89 | 1%0.84 | 18%1.06 |
| $500k+ | 0%0.55 | 0%0.56 | 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 | 1,020 |
|---|---|
| Median list price | $385,000 |
| Median projected STR revenue (annual, gross) | $38,147 |
| Median average daily rate (ADR) | $227 |
| Median occupancy | 46% |
| Median beds | 4 |
| Median size | 2,375 sqft |
| Estimated cash-flow-positive share | 38.2% |
| Median days on market | 51 days |
| New listings (last 30 days) | 31.7% of active |
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