Everything is bigger in Texas—including the opportunities for real estate investors. According to a recent report by Urban Land Institute, the Dallas-Fort Worth metroplex is the top spot for real estate investment in 2025. Whether you’re purchasing your first investment property or expanding your portfolio, Dallas offers the perfect combination of stability and opportunity. 

With a booming economy, a rapidly growing population, and an affordable yet appreciating housing market, Dallas is a magnet for new residents. As a result, rental demand is sky-high, making it a favorable environment for out-of-state investors seeking long-term growth and passive income. In this guide, we’ll break down what makes Dallas such a promising market, highlight key investment areas, and provide tips to help you succeed.

Why Invest in Rental Properties in Dallas

Dallas continues to attract both people and businesses, creating a strong foundation for consistent rental income. Here are a few reasons why investing in rental properties in Dallas is a smart move:

• Strong Job Market: Dallas attracts a mix of young professionals and families, drawn by the city’s strong economic opportunities. With Fortune 500 companies like AT&T and Southwest Airlines headquartered here, the job market is thriving. That means renters—lots of them.

• Growing Population: The U.S. Census Bureau has named Dallas the fastest-growing metro in the country, with over 8.1 million residents and counting. This growth is primarily driven by domestic migration, with many people relocating from states like California and New York. This has created a constant demand for rentals across a variety of price points, with many residents willing to pay extra for modern upgrades and premium amenities. 

• Landlord-Friendly Laws: Texas makes life easier for landlords with its straightforward eviction process, minimal tenant restrictions, and lack of rules around security deposits. Unlike many other states, Texas has no rent control, allowing landlords to adjust rent based on market conditions. No state income tax also means more money in your pockets.

• Affordability: Investing in rental properties in Dallas doesn’t have to mean wiping out your savings. While coastal cities often have steep price points for real estate investors, the cost of investment has remained relatively unchanged in Dallas, even with the rise in housing prices. 

While Dallas has a plethora of opportunities, every investor’s journey looks different. Tailoring your strategy to align with the city’s unique market trends can help you maximize your returns. 

Potential Barriers to Investment in Dallas

While Dallas offers immense opportunities, every market has its challenges. Identifying these potential hurdles and planning for them can help you navigate the investment process with confidence:

• Property Management: Out-of-state investors often face logistical challenges when managing their rental properties remotely. Tasks like maintenance requests, responding to tenant concerns, and conducting inspections require someone on the ground. Property management companies like Evernest can take on these responsibilities, ensuring your property remains well-maintained and profitable. 

• Finding Tenants: While Dallas boasts a growing population, not every neighborhood attracts highly qualified renters. Since the success of your investment depends on placing the right residents in your property, you’ll want to understand which areas match your investment goals. Whether that means targeting residents in the Texas Section 8 program or focusing on tenants with steady rental histories, it’s important to meet your financial objectives and the needs of the community you’ve chosen. 

• Local Regulations: Every state and city has its own laws, and Dallas is no exception. From creating lease agreements to understanding landlord entry rules, it’s essential to familiarize yourself with local regulations. Partnering with professionals who are familiar with the area can help you stay up-to-date and avoid costly legal missteps. 

• Market Risks: Real estate investing always carries some degree of risk, whether it’s market fluctuations, unexpected maintenance costs, or tenant-related concerns. Dallas’s steady rental demand and landlord-friendly policies help mitigate some of these risks, but due diligence and planning are still important.

While there are inevitable barriers to investing in Dallas, they are manageable. A little preparation—like researching local laws, partnering with a property manager, and understanding the unique dynamics of the Dallas market—can set you up for success. 

Suggested listening: Getting Started in Out-of-State Investing

Where to Invest in Dallas

Dallas’s suburbs cater to a range of renters and investors alike. After you’ve decided to invest here, the next step is finding the perfect spot to grow your portfolio. Whether you’re looking for steady returns or high-growth opportunities, here are a few areas worth exploring: 

• Downtown Dallas: Young professionals who want to live close to work while enjoying a faster-paced lifestyle often choose Downtown Dallas as their landing spot. Known for its luxury high-rises and premium amenities, occupancy rates stay high while rental prices continue to climb, making it a great option for investors focused on luxury rentals. 

• North Dallas Suburbs: Families are increasingly flocking to North Dallas Suburbs like Frisco and McKinney, ranked as the two best real estate markets in 2024. Other nearby suburbs like Plano, Lewisville, and Allen are also attractive options. Top-rated schools, safe neighborhoods, and family-friendly amenities are some of the major draws. Strong property appreciation in the area further adds to their appeal. Single-family homes are in constant demand in these suburbs, making them ideal for investors seeking long-term tenants.

• South Dallas: South Dallas provides residents with budget-friendly housing options without limiting their access to the city’s job market and amenities. Investors can enter the market at a lower price point while benefiting from strong rental demand and the potential for high ROI—especially as Dallas grows and its infrastructure expands. 

Every investor’s ideal market depends on their unique preferences, so yours may be different from the norm, and that’s something to embrace.

Securing the Right Team for Your Dallas Investment

Dallas is full of potential, but navigating it without local expertise can be challenging. From tax laws and tenant expectations to neighborhood trends, understanding these nuances is essential for success—especially for out-of-state investors. Here’s how key professionals can support your investment: 

• Realtors: Beyond finding properties, a skilled local realtor can act as your guide to the Dallas market, providing market-specific knowledge, access to off-market deals, and advice tailored to your investment goals. At Evernest, our team specializes in working with out-of-state investors, helping you identify opportunities that align with your objectives. With our investor-friendly brokerage services, you’ll have access to the tools and expertise needed to make the most of the Dallas market—whether you’re buying or selling.

• Property Managers: A dependable property manager acts as your eyes and ears on the ground, handling tenant placement, inspections, maintenance, and other day-to-day responsibilities. This ensures your rental property stays profitable while alleviating the stress of remote management. 

Let Evernest Invest in You

Dallas has everything an out-of-state investor could ask for: affordability, strong rental demand, and a growing market showing no signs of slowing down. To capitalize on these opportunities, having the right support system is vital. Evernest guides you through the entire investment process, from purchasing your investment property to managing it. With our comprehensive support, you can focus on growing your portfolio while enjoying the rewards of a successful rental investment in Dallas.