Pearland
Investment Analysis

Pearland, TX
Investor Report

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

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51
Investment Score
Buy
Cap Rate (Est.)
2.6%
Gross Yield
4.3%
P/R Ratio
19.9x
YoY Growth
-0.9%
Median Home Price
$351,500
Average Rent (1BR)
$1,252/mo
Median Income
$108,454
Population
127,216

Investment Breakdown

40
Value Score
41
Growth Score
83
Safety Score
50
Afford Score

Pearland has a price-to-rent ratio of 19.9x, which indicates buying is moderately favorable.

The estimated cap rate of 2.6% is below average, typical of appreciation-focused markets.

Year-over-year price growth of -0.9% suggests a cooling market.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $1,252
Annual Gross $15,024

Est. Monthly Expenses

Property Tax (~1.5%) -$439
Insurance (~0.5%) -$146
Maintenance (~1%) -$293
Est. Net Cash Flow $373/mo

Price Forecast 2026โ€“2028

๐Ÿ”ฎ Pearland Price Forecast 2026โ€“2028

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$372K2027$404Kโ–ฒ 8.7%2028$418Kโ–ฒ 12.4%20232024Now
$439K$344K
Current
$352K
2026
Projected
$404K
โ†‘ 8.7% by 2027
Projected
$418K
โ†‘ 12.4% by 2028
5yr CAGR:+5.2%
Confidence:Moderate
Rยฒ:0.66
โ–ผ

For those evaluating a Pearland housing market forecast through 2028, the current data suggests a period of price stabilization rather than dramatic growth. With a median home price of $371,960 and a recent YoY price change of -1.0%, the market has cooled from its prior momentum. The 5-year CAGR of 5.3% indicates solid historical appreciation, but the immediate trend points toward a plateau. A key question for buyers is will Pearland home prices drop further? Given the strong Risk Grade: A and a market temperature of 63/100, a significant crash seems unlikely, though a modest correction or sideways movement is probable as affordability constraints tighten.

The Price-to-Rent Ratio stands at 22.0x, well above the national average of 18x, which heavily favors renting over buying from a pure financial standpoint. This aligns with the "RENT" verdict, suggesting that cash flow for investors is thin and monthly costs for owners are high relative to leasing. Days on market at 41 indicate a balanced pace, not the frantic speed of a seller's market. Looking toward Pearland real estate Pearland 2027, local economic drivers will be critical. Continued population influx from Houston and strong school districts will support demand, but rising property taxes and insurance costs in the Greater Houston area could pressure affordability, capping price gains. The 5-year price range of $286,206 โ€“ $375,674 suggests the market is testing the upper bounds of that channel.

Ultimately, Pearland appears poised for a normalization phase. While the 5-Year Price Change of 30.0% demonstrates the area's long-term desirability, the current metrics point to a market finding its new equilibrium. External economic factors, such as broader interest rate trends and local job growth in the energy and healthcare sectors, will dictate the velocity of any price movement. Expect a balanced market where buyers regain some negotiating power, but sellers with well-priced properties in desirable school zones will still find success. The outlook is neither sharply bullish nor bearish, but rather a return to fundamentals where value and affordability will drive decisions.

Projected Cap Rate (2027)
2.3%
5yr CAGR
+5.2%

Job Market

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

Healthcare

70
Score
Good

Risk Factors

Declining Prices

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 97.1%
Months Supply 4.3
Price Drops 31%
Gone in 2 Wks 25%

Market Position

Affordability Average
Safety Very Safe

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Pearland.

Total ROI
-120%
on $70,300 invested
Annual ROI
NaN%
compounded
Total Return
-$84,668
appreciation + cashflow
Mo. Cash Flow
-$1,523
year 1 estimate
Equity Growth Over 5 Years
Y173kY276kY380kY483kY587k
Appreciation
$0
Cash Flow
-$84,668
Final Equity
$86,779

* 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 Pearland

Property

Purchase Price$351,500
Monthly Rent$1,252
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$1,357
Monthly Cash Flow
-$16,289/ year
-23.2%
Cash-on-Cash
1.4%
Cap Rate

Monthly Breakdown

+ Rental Income$1,252
โˆ’ Mortgage (P&I)$1,777
โˆ’ Property Tax$352
โˆ’ Insurance$125
โˆ’ Maintenance$293
โˆ’ Vacancy Loss$63
= Net Cash Flow-$1,357

Investment Summary

Down Payment
$70,300
Loan Amount
$281,200
Total Monthly Expenses
$2,609
Gross Yield
4.3%

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