Texas ranks No. 1 among states by number of active net lease (NNN) listings in the data InvestmentGrade.com tracks, with 900 active listings as of October 22, 2026, of which 842 publish an asking cap rate. This guide shows current asking cap rates for Texas, the tenants with the most listings, and the Texas-specific issues buyers should check, from taxes to weather.
Texas NNN Cap Rates Today
| Measure | Texas | All states |
|---|---|---|
| Active NNN listings tracked | 900 | 6,747 with a cap rate |
| Median asking cap rate | 6.25% | 6.35% |
| Middle half of listings | 5.65% to 7.00% | 5.75% to 7.14% |
| Rank by number of active listings | 1 |
Active listings InvestmentGrade.com tracks, as of October 22, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings with a published cap rate.
Tenants With the Most Texas Listings
| Tenant | S&P / Moody’s | Active listings | Median asking cap rate |
|---|---|---|---|
| Dollar General | BBB/Baa3 | 40 | 7.15% |
| Walgreens | no verified rating | 31 | 7.00% |
| 7-Eleven | A-/Baa2 | 29 | 5.00% |
| CVS | BBB/Baa3 | 21 | 6.00% |
| Family Dollar | B | 18 | 8.38% |
| McDonald's | BBB+/Baa1 | 16 | 3.75% |
| Chipotle | no verified rating | 14 | 4.65% |
| Popeyes | BB+ | 10 | 5.63% |
| Sonic Drive-In | B+ | 9 | 6.50% |
| Dollar Tree | BBB | 9 | 6.75% |
| Starbucks | BBB+/Baa1 | 9 | 5.75% |
| Chick-fil-A | no verified rating | 8 | 4.08% |
Active net lease listings in TX that InvestmentGrade.com tracks, listings last observed October 19, 2026. Tenants shown have at least 8 listings with an asking cap rate (stated, or computed from stated income and price when no rate is stated). Asking cap rates are not closed-sale cap rates. Ratings are the agency ratings in our ratings database for the entity shown, and rating types vary by company; where the rated entity is a parent company or franchisor, confirm whether it signs or guarantees the lease.
The mix of tenants explains much of the spread in cap rates. Ground leases to quick-service restaurants such as McDonald’s and Chick-fil-A often ask very low cap rates, while dollar stores and unrated tenants ask more. Compare a specific property with listings for the same tenant and lease type, and see each tenant’s page, such as Dollar General, 7-Eleven or CVS, for national data. Credit ratings come from our tenant ratings database.
Texas-Specific Considerations
Taxes
- No personal income tax. Texas does not tax individuals’ income, including rental income received directly.
- Franchise (margin) tax. Texas taxes many business entities, including LLCs and partnerships, through its franchise tax. Entities that hold rental property may qualify as passive entities or fall below the annual no-tax-due revenue threshold, but confirm with a Texas tax advisor before choosing an ownership entity.
- Property taxes. Texas has no state property tax, but local property taxes are relatively high and vary by county, city, school district and special district. In a net lease the tenant usually reimburses property taxes, but check how the lease handles tax increases after a sale reassessment and who handles protests.
Weather and insurance
Properties along the Gulf Coast face hurricane and flood risk, and much of the state is exposed to hail and severe storms. Confirm the lease’s insurance requirements, who pays deductibles, whether the property is in a flood zone, and the tenant’s obligation to rebuild after a casualty.
Market research sources
- Population projections: the Texas Demographic Center.
- Traffic counts: Texas Department of Transportation traffic count data.
- Local economic and tax data: the Texas Comptroller of Public Accounts and county appraisal districts.
Buying Texas NNN Property in a 1031 Exchange
Because Texas has so many active listings, it is a common market for 1031 replacement property. Line up candidates before your relinquished property closes, since the 45-day identification period starts at closing, and compare each candidate’s tenant credit, remaining lease term, rent and location rather than relying on the state median. See the 1031 exchange guide and the investment grade NNN tenants for 1031 exchanges.
Frequently Asked Questions
How many NNN properties are for sale in Texas?
InvestmentGrade.com currently tracks 900 active net lease listings in Texas, which ranks No. 1 among states in our data, as of October 22, 2026.
What is the average cap rate for NNN properties in Texas?
The median asking cap rate across active Texas listings with a published cap rate is 6.25%, with the middle half of listings between 5.65% and 7.00%. Asking cap rates are not closed-sale cap rates, and the tenant, lease and location drive each property’s price.
Does Texas have a state income tax on rental income?
Texas has no personal income tax, so individuals do not pay state income tax on rental income. Many business entities owe the Texas franchise (margin) tax, though entities holding rental property may qualify for an exemption or fall below the no-tax-due threshold. Ask a Texas tax advisor.
Which tenants have the most NNN listings in Texas?
The live table on this page lists the tenants with the most active Texas listings and their median asking cap rates. Dollar stores, convenience stores, pharmacies and quick-service restaurants are among the most common.
Looking at Texas NNN Property?
We can review the tenant’s credit, the lease and the property, and compare pricing with current Texas and national listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission. Investment Grade Capital, a service of Investment Grade LLC, can match you with lenders.
Request an NNN investment consultation, email team@investmentgrade.com, or search current listings.
