Houston, TX vs St. Louis, MO: Real Estate Investment Comparison

Side-by-side comparison of two popular real estate investment markets. See how Houston and St. Louis stack up on price, rent, cap rate, and more.

Median Home Price
$250K-$340K
$150K-$230K
Average Rent
$1,300-$1,900
$900-$1,400
Cap Rate Range
5-8%
7-10%
Price-to-Rent Ratio
14-17
11-14
Population
2.3M+
300K+
Region
South
Midwest

Why Invest in Houston?

Houston is the energy capital of the US with a massively diversified economy including healthcare (Texas Medical Center), aerospace (NASA), and manufacturing. Affordable housing relative to other major metros.

  • 1No state income tax
  • 2Texas Medical Center — largest in the world
  • 3NASA and energy sector employment
  • 4Affordable for a top-5 US metro

Why Invest in St. Louis?

St. Louis offers some of the most affordable real estate among major US metros with strong rental yields. Washington University and a stable healthcare sector provide consistent employment and rental demand.

  • 1Very affordable entry points
  • 2Washington University drives demand
  • 3Strong healthcare sector
  • 4High cap rates available

Which Is Better For...

Cash Flow Investing

St. Louis has higher cap rates (7-10% vs 5-8%), suggesting stronger cash flow potential relative to price.

Low Entry Cost

St. Louis has lower median prices ($150K-$230K vs $250K-$340K), requiring less capital to get started.

Rental Income

Houston has higher average rents ($1,300-$1,900 vs $900-$1,400), generating more gross rental income.

Market Size

St. Louis (300K+) is the larger market, offering more inventory and diversification.

Analyze Properties in Either Market

Search any address in Houston or St. Louis and get instant cap rate, cash flow, and ROI calculations.

Frequently Asked Questions

Is Houston or St. Louis better for rental property investing?

Both cities offer opportunities. Houston has cap rates of 5-8% with median prices of $250K-$340K, while St. Louis has cap rates of 7-10% with median prices of $150K-$230K. The best choice depends on your investment goals — cash flow vs appreciation — and your budget. Use PropertyDNA to analyze specific properties in either market.

What are the cap rates in Houston vs St. Louis?

Houston, TX has cap rates ranging from 5-8%, while St. Louis, MO has cap rates of 7-10%. Higher cap rates indicate more income relative to the property price, but may come with different risk profiles.

Which city has more affordable rental properties, Houston or St. Louis?

Houston has median home prices of $250K-$340K compared to St. Louis's $150K-$230K. Average rents are $1,300-$1,900 in Houston and $900-$1,400 in St. Louis. Consider both price and rent when evaluating affordability and cash flow potential.

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