Flower Mound
Investment Analysis

Flower Mound, TX
Investor Report

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

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29
Investment Score
Rent
Cap Rate (Est.)
1.7%
Gross Yield
2.9%
P/R Ratio
30.8x
YoY Growth
-2.5%
Median Home Price
$540,000
Average Rent (1BR)
$1,291/mo
Median Income
$147,490
Population
79,292

Investment Breakdown

8
Value Score
25
Growth Score
55
Safety Score
47
Afford Score

Flower Mound has a price-to-rent ratio of 30.8x, which indicates renting is more favorable than buying.

The estimated cap rate of 1.7% is below average, typical of appreciation-focused markets.

Year-over-year price growth of -2.5% suggests a cooling market.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $1,291
Annual Gross $15,492

Est. Monthly Expenses

Property Tax (~1.5%) -$675
Insurance (~0.5%) -$225
Maintenance (~1%) -$450
Est. Net Cash Flow -$59/mo

Price Forecast 2026โ€“2028

๐Ÿ”ฎ Flower Mound Price Forecast 2026โ€“2028

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$593K2027$661Kโ–ฒ 11.5%2028$688Kโ–ฒ 16.0%20232024Now
$723K$548K
Current
$540K
2026
Projected
$661K
โ†‘ 11.5% by 2027
Projected
$688K
โ†‘ 16.0% by 2028
5yr CAGR:+6.6%
Confidence:Moderate
Rยฒ:0.61
โ–ผ

For anyone evaluating the Flower Mound housing market forecast through 2028, the data points to a period of stabilization rather than explosive growth. The recent -2.4% YoY price change, following a robust 5-year gain of 39.3%, signals a necessary cooling. With a Price-to-Rent Ratio of 34.0xโ€”well above the national average of 18xโ€”the market is stretched, making the immediate financial case for renting stronger. The current Market Temperature of 63/100 and a Risk Grade of A suggest a stable, albeit slower, environment. Key local factors like the continued expansion of the Alliance corridor and strong Lewisville ISD amenities will support demand, but rising property taxes and broader affordability challenges in the DFW metroplex will likely cap appreciation.

Looking ahead to 2026-2028, prospective buyers asking will Flower Mound home prices drop significantly will likely find the answer is a modest correction rather than a crash. The Days on Market of 40 indicates a balanced market where well-priced homes still move, preventing a steep downturn. The Buy/Rent Verdict of RENT is driven by the high cost of ownership relative to renting, but the area's low vacancy rates and desirability for families provide a solid floor. While the 5-Year CAGR of 6.7% sets a high bar, a more sustainable 2-4% annual appreciation seems plausible as the market finds equilibrium. For Flower Mound real estate Flower Mound 2027, expect a stable environment where long-term equity growth remains the primary incentive over short-term gains.

Projected Cap Rate (2027)
1.4%
5yr CAGR
+6.6%

Job Market

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

Healthcare

70
Score
Good

Risk Factors

Overvalued Market
Declining Prices

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 98.0%
Months Supply 3.7
Price Drops 17%
Gone in 2 Wks 31%

Market Position

Affordability Average
Safety Average

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Flower Mound.

Total ROI
-157%
on $108,000 invested
Annual ROI
NaN%
compounded
Total Return
-$169,498
appreciation + cashflow
Mo. Cash Flow
-$2,940
year 1 estimate
Equity Growth Over 5 Years
Y1112kY2117kY3122kY4128kY5133k
Appreciation
$0
Cash Flow
-$169,498
Final Equity
$133,316

* 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 Flower Mound

Property

Purchase Price$540,000
Monthly Rent$1,291
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$2,619
Monthly Cash Flow
-$31,429/ year
-29.1%
Cash-on-Cash
0.2%
Cap Rate

Monthly Breakdown

+ Rental Income$1,291
โˆ’ Mortgage (P&I)$2,731
โˆ’ Property Tax$540
โˆ’ Insurance$125
โˆ’ Maintenance$450
โˆ’ Vacancy Loss$65
= Net Cash Flow-$2,619

Investment Summary

Down Payment
$108,000
Loan Amount
$432,000
Total Monthly Expenses
$3,910
Gross Yield
2.9%

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