Faro Labs / Markets / Mesquite, TX
Mesquite real estate investment market
What a typical rental in Mesquite, Texas costs, rents for, and returns: underwritten by Faro's own engine, not a scraped summary.
Returns assume 20% down at 6.75% over 30 years, 7% vacancy, and standard operating costs: Faro's default assumptions, the same ones every report starts from. Home value and rent trends as of 2026-05-31.
Difficult for both
At market rent, a typical Mesquite rental runs $342 short each month, and home values moved −3.9% over the last year. Neither leg is carrying deals right now, which means the ones that work here are bought well below market rather than at it.
The price a deal actually works at
Faro models five price points for Mesquite, from a weak buy to a strong one. The market-rate deal is $263,385; a good buy is $237,046 and a great one $210,708 roughly 20% below market value. Those are the bars a specific listing gets measured against when you run it.
How Mesquite compares
Of the 210 markets Faro publishes, Mesquite is the 155th most expensive to buy into: 34% below the median covered market, and the 29th strongest on rent-to-price. Within Texas it's the 16th priciest of 27 markets we cover. On the last year of home-value change it ranks 193rd.
To break even at the default financing, a typical Mesquite property would need about $2,148 a month in rent: $422 more than the $1,726 the market currently supports.
What each tier costs in Mesquite
Faro models five price points per market. A listing gets measured against these bars, not against a national average.
| Tier | Purchase price | Market rent | vs. market rate |
|---|---|---|---|
| Weak buy | $289,724 | $1,640/mo | +10% |
| Fair buy | $276,554 | $1,691/mo | +5% |
| Market rate | $263,385 | $1,726/mo | — |
| Good buy | $237,046 | $1,812/mo | -10% |
| Great buy | $210,708 | $1,899/mo | -20% |
A typical Mesquite deal, underwritten
The market-rate property above, run through the same engine every Faro report uses.
| Purchase price | $263,385 |
|---|---|
| Monthly rent | $1,726 |
| Cash required (20% down + 3% closing) | $60,579 |
| Net operating income | $12,299/yr |
| Monthly cash flow | -$342 |
| Cap rate | 4.7% |
| Cash-on-cash return | −6.8% |
| DSCR | 0.75 |
Values are falling here
Home values in Mesquite moved 3.9% DOWN over the last year, measured as the median across 3 ZIP codes. That reverses the usual argument for a low-cash-flow buy: there's no appreciation currently carrying the deal, so a property here has to earn its keep on rent, and a typical one produces a $342 monthly shortfall. Falling values also mean today's comp-supported price is a moving target. The discount you negotiate matters more than usual.
What it would take to break even
A typical Mesquite property would need about $2,148 a month to cover itself at the default financing: 24% above the $1,726 the market currently supports. That gap is the honest size of the problem: it isn't closed by trimming an expense line, it's closed by buying meaningfully below market, putting more down, or finding a property that rents well above its market's median.
Negotiation matters more than usual here
The gap between a market-rate Mesquite buy at $263,385 and a strong one at $210,708 is 20%: a wide band. In markets with a spread that size, what you pay relative to comps drives the return more than the market's own direction does. Two buyers in the same city, the same month, can end up with completely different deals.
Mesquite investor questions
Is Mesquite a good place to buy rental property?
A typical Mesquite rental at $263,385 renting for $1,726 a month returns 4.7% on a cap-rate basis and runs short by $342 a month at 20% down. Individual deals vary far more than markets do, which is the whole reason to underwrite a specific address.
Can you cash-flow a rental in Mesquite?
Not at the market's own price and rent. A typical property runs $342 short each month. It would need about $2,148 in rent to break even. Deals that work here are bought below market rather than at it, which is what the price ladder above is for.
Are Mesquite home prices dropping?
Yes: values moved down 3.9% over the last year, taken as the median across 3 ZIP codes in the city. That makes the price you negotiate matter more than usual, since the comp-supported value you're measuring against is itself moving.
Are rents going up in Mesquite?
Rents moved down 1.4% over the last year, measured across 3 ZIP codes. The typical market-rate rental sits at $1,726 a month.
Other Texas markets
Run the numbers yourself
A market average is not a deal.
Paste a real Mesquite listing and Faro underwrites that specific property from its own comps, with a target price you can actually offer.
Estimates for analysis and educational use only: not financial, investment, tax, or legal advice. Verify every number independently before making a purchase decision.