Pleasant Grove (75217) Tops Dallas Yields at 10.5%

Yields across 83 Dallas suburbs range from 10.5% in Pleasant Grove (75217) down to under 4% in some of the city's premium northern enclaves. That spread is wider than the gap between long-term rental and short-term rental at the city level, which means where you buy inside Dallas County matters more than how you rent it out. The ranking below shows the suburbs leading on gross rental yield, and the analysis after it explains why the pattern looks the way it does.

The Dallas city median sits at roughly $350,000 for a 3-bed house renting for $1,778, a gross yield of 6.1%. Texas is one of the more investor-friendly states, with no statewide ban on short-term rentals and a property tax rate of around 1.5% that already eats into net returns, so the gross yield gap between suburbs translates almost directly into the cash you keep.

Southern Dallas Suburbs Lead the Yield Ranking

Gross yields = annual income / sale price. Based on 3-bed house medians. The dashboard shows every property type and bedroom count.

Why the Top Five Cluster in Southern Dallas

Pleasant Grove (75217) leads the table at 10.5% for one straightforward reason: entry prices around $207,250 sit well below the Dallas County median of $350,000, while rent of $1,815 is actually modestly above the city average of $1,778. Pleasant Grove is a working-class neighbourhood in southeast Dallas with steady demand from service-sector workers commuting into central Dallas, Mesquite, and the industrial corridor along I-30. Rental demand here is structural rather than amenity-driven, which means it tends to hold up through softer cycles.

Cedar Crest/South Dallas (75232) and Oak Cliff/North (75203) follow the same southern-Dallas pattern. Both sit south of the Trinity River, an area that has historically traded at a steep discount to North Dallas despite being closer to downtown employment than many of the higher-priced northern suburbs. Cedar Crest/South Dallas (75232) comes in at $260,000 with rent of $2,243, producing 10.4%; Oak Cliff/North (75203) is the cheapest entry on the list at $179,254 and still pulls 10.3%. Under short-term rental, Oak Cliff/North (75203) pulls a much stronger 27.3% versus 12.1% in Cedar Crest/South Dallas (75232), though tourist demand is thinner this far from the central business district and Bishop Arts, so long-term rental is the safer base case for both.

Lancaster (75134) and Mesquite (75181) sit further out. Lancaster (75134) is a southern fringe market where entry prices around $274,000 buy a newer, larger 3-bed house, and family rental demand is anchored by school catchments and access to I-35E. Mesquite (75181) captures the eastern commuter belt; demand here comes from workers at the nearby logistics and manufacturing corridor rather than tourism. Both come in at 10.2% on long-term rental, comfortably ahead of the city median.

The Yield-Price Trade-Off Is Steeper Than the Rental-Strategy Trade-Off

The mechanical reason these southern suburbs win on yield is that prices fall faster than rents as you move away from the prestige postcodes. An investor entering at $207,250 in Pleasant Grove (75217) versus $350,000 at the city median is committing roughly 40% less capital but giving up only a modest amount of rent. The yield arithmetic flatters the cheaper end of the market because tenants in Dallas can only stretch so far on housing costs, so rents compress into a much narrower band than sale prices.

What the yield ranking does not price in is the capital-risk profile. Premium suburbs in North Dallas have historically delivered stronger appreciation, which can outweigh a yield gap of three or four percentage points over a multi-year hold. The southern-Dallas yield premium is real, but so is the historic appreciation gap. The dashboard breaks both down by suburb, so you can model income and growth assumptions side by side.

Premium Dallas Suburbs Trade Yield for Liquidity and Growth

For context, here is how some of Dallas's most in-demand suburbs compare. These are established neighbourhoods where investors typically accept lower yields in exchange for capital growth and tenant quality.

High-demand suburbs for context. Same methodology as the yield ranking above.

These suburbs yield less on long-term rental because buyers are paying for school catchments, walkability, and historic appreciation rather than current income. Short-term rental does change the picture in some of them: areas closer to downtown, the Bishop Arts district, or the medical district can pull meaningfully higher nightly rates and shorter vacancy windows, which is reflected in the short-term yield column. Even so, the gap to the southern suburbs on income alone remains wide.

What the Yield Ranking Does Not Show

Gross yield is rent divided by price, and a high number can mean either of two things: rents are strong, or prices are depressed. In southern Dallas, it is more the latter than the former. That matters because depressed prices can reflect thinner buyer pools, slower appreciation, and higher tenant turnover. The dashboard separates rent strength from price weakness so you can see which of the two is doing the work in any given suburb.

The ranking also says nothing about vacancy risk, capital growth, or the quality of the underlying housing stock. A 10% gross yield on a property that takes two months to re-let, sits in a flood zone, or needs $40,000 of capex inside the first year is not a 10% net return. Median figures also lag the market by roughly six to twelve months, so suburbs in the middle of a price run-up may already be yielding less than the table suggests.

View Dallas in the dashboard → Free preview · every bedroom count and property type

Dallas's Top Suburb Beats Both the Texas and National Median by a Wide Margin

The 10.5% headline yield in Pleasant Grove (75217) sits well above the Texas state median of 6.1% and is roughly double the US national median of 5.3%. Even the fifth-ranked suburb on the list clears both benchmarks comfortably. Dallas's suburban balance shows up in the data: enough rental demand from the metro economy to support strong rents in cheaper postcodes, and enough affordability in the south of the county to keep entry prices well below comparable Sun Belt markets. For investors weighing Texas alternatives, Fort Worth Long-Term Rentals Yield 6.0%, Short-Term Caps Kill the Alternative and Dallas Short-Term Rentals Gross 80% More, but Costs Narrow the Gap cover the same question for nearby metros.

The full methodology behind these figures is in the data sources and market score methodology notes. Explore Dallas rental data in the dashboard for suburb-by-suburb numbers, every bedroom count and property type, and the full short-term rental vs long-term rental comparison applied to your specific target ZIP.

Data reflects market conditions as of April 2026.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.