How Much Is My 10-Unit Apartment Building Worth in Texas?

Value starts with income, not square footage

A 10-unit building is valued as an income-producing asset. Most buyers start with net operating income (NOI): the rent you collect, plus other income such as laundry or pet fees, minus the real costs of running the property — taxes, insurance, utilities you pay, repairs, management and reserves. Debt payments are not part of NOI.

Buyers then apply a capitalization (cap) rate to that NOI. Value ≈ NOI ÷ cap rate. A building producing $90,000 of NOI at a 7.5% cap rate implies roughly $1.2 million. The cap rate a buyer uses depends on the market, the building's age and condition, and how risky the income looks.

Why two similar buildings get very different numbers

In small multifamily, the details matter more than in large complexes. One vacancy in a 10-unit building is 10% of income. Buyers look closely at rents compared with the neighborhood, how many units are occupied by long-term tenants, deferred maintenance (roofs, plumbing, HVAC, foundations), and whether utilities are individually metered.

Property taxes and insurance have risen sharply across much of Texas. Buyers will usually underwrite using the taxes they expect after a sale, not what you pay today, which can lower the value they arrive at.

Price per unit is a sanity check, not the answer

You will hear people quote a price per unit for an area. It is useful as a quick comparison, but it hides differences in unit size, condition and rent. Treat it as a range to check a valuation against — not the valuation itself.

What you can gather to get a realistic range

A current rent roll, the last 12 months of income and expenses (a T-12), recent tax and insurance bills, and a list of major repairs or upgrades. With those, an experienced buyer can give you a realistic range and explain how they got there. If the numbers are incomplete, that's okay — a conversation can still narrow it down.