2025’s hidden gems: Where small towns are outperforming major cities in ROI
When people think of real estate in Texas, cities like Austin, Houston, and Dallas usually come to mind. But in 2025, it’s the small towns that are surprising everyone. From higher rental yields to faster appreciation, many lesser-known areas are offering better return on investment (ROI) than some of the state’s biggest metros.
If you're trying to sell a house fast in Houston, this trend matters. As investors turn to smaller markets, it shifts the competition—and the strategy.
Why small towns are on the rise
There are a few reasons why small town investment in Texas is booming this year:
- Lower entry prices: Homes in small towns are often 40–60% cheaper than in major cities.
- Remote work flexibility: More Texans are choosing quiet, affordable areas without sacrificing job opportunities.
- Local development: Improved roads, schools, and broadband access are making rural areas more livable and desirable.
With affordability in mind, many first-time investors are targeting small towns as a way to build wealth without the high risk or cost of big-city properties.
The numbers tell the story
Here’s a comparison of average home prices and estimated annual ROI in select Texas locations:
| Location | Avg Home Price (2025) | Avg Rental Yield | Estimated ROI (1 Year) |
| Houston | $338,000 | 6.2% | 7.5% |
| Waco | $258,000 | 7.1% | 9.2% |
| Temple | $235,000 | 7.4% | 9.6% |
| Brenham | $210,000 | 7.8% | 10.1% |
| Greenville | $199,000 | 8.0% | 10.5% |
These towns might not have skyscrapers, but they’re winning on returns. Investors are especially interested in homes near local colleges, industrial parks, and highways.
What this means for Houston sellers
As investors pour into smaller towns, the pressure to compete in big cities grows. If you're hoping to sell a house fast in Houston, your listing needs to show why it still offers value—whether that’s strong rental potential, location benefits, or nearby amenities.
If your property is in an area that’s gentrifying or has access to upcoming developments, highlight those features. You’re not just selling a house—you’re selling future value.
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And if your home isn’t move-in ready, you may still catch the attention of investors. 👉 Top strategies for selling your Texas home fast without repairs
Final thoughts
Small town investment in Texas is no longer just a backup plan—it’s becoming the smart play. With strong ROI, lower costs, and growing demand, these hidden gems are now top-tier options for savvy buyers.
If you’re in a major city like Houston, the best way to stay competitive is to know what buyers want and highlight every strength your property has. Ready to time your sale perfectly? 👉 Best time of year to sell your house fast in Texas