Pleasant Grove Yields 10.5% in Dallas, Beating Premium Suburbs by 8 Points

Yields across 83 Dallas suburbs range from 10.5% in Pleasant Grove (75217) down to under 3% in premium inner pockets. That spread is wider than the gap between short-term rental and long-term rental at the city level, which means where you buy in Dallas matters more than how you rent it out. This ranking shows which suburbs lead on gross yield and why the pattern exists.

Pleasant Grove (75217) Leads Dallas at 10.5% on a Sub-Median Entry Price

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

Southern Dallas Leads Because Prices Lag Rents That Track the Metro

Pleasant Grove (75217) sits at the top of the ranking with 10.5% gross yield, driven by an entry price of about $207,000, well below the city-wide 3-bed median of about $379,000. Pleasant Grove is a southeast Dallas neighborhood inside Loop 12 with quick access to I-30, downtown employment, and the Dallas-Mesquite border. Sale prices have stayed depressed by the area's older housing stock and historic disinvestment, but rental demand from working families, hospital staff at Baylor Scott and White, and tenants priced out of East Dallas keeps monthly rents around $1,800. The result is the widest rent-to-price gap in the county.

Cedar Crest/South Dallas (75232) and Oak Cliff/North (75203) round out the top three with yields of 10.4% and 10.3%. Both sit in southern Dallas with direct highway access to the central business district via I-35E and US-75 connectors. Cedar Crest benefits from its position on the Trinity River bluffs and rising interest from buyers crossing south of downtown, while Oak Cliff's North 75203 ZIP captures the spillover demand from gentrifying Bishop Arts. The pattern repeats: yield concentrates in places that combine commuter access with prices that have not yet caught up to inner-ring Dallas.

Lancaster (75134) and Mesquite (75181) extend the ranking further out. Lancaster sits in southern Dallas County with proximity to the I-20 logistics corridor and the Inland Port distribution hub, generating tenant demand from warehouse and supply-chain workers. Mesquite's 75181 ZIP straddles the eastern edge of the metro, where new home construction has pushed prices up but rents have followed because of family demand near Mesquite ISD schools. These are classic long-term rental suburbs where the tenant base is local workers rather than visitors, and the short-term rental yield columns reflect that: the demand patterns favor steady leases, not weekend stays.

The Yield-Price Trade-Off: Cheap Entry, Slower Capital Growth

The inverse relationship between price and yield runs the entire Dallas ranking. Cheaper suburbs yield more because rent does not fall as fast as price; tenants in Pleasant Grove (75217) pay roughly half what they would in Highland Park, but the home costs less than a tenth. Premium suburbs yield less because buyers there pay for school catchments, lifestyle amenity, and capital growth potential rather than rental income. An investor entering at about $207,000 in Pleasant Grove (75217) versus about $379,000 at the city median faces a different capital-risk profile: the lower entry price is more accessible but has historically delivered slower price appreciation, while higher-priced suburbs in this metro have tended to compound capital growth faster over multi-year holds.

Dallas's overall median sale price sits 56.2% above the national figure, but the spread inside the metro is what matters for yield strategy. The cheapest 3-bed house in the dataset is about $179,000; the most expensive is about $2.94m. That is more than a 16-fold range within a single county, so blanket statements about "Dallas yield" miss the point. The yield you actually achieve depends entirely on which ZIP you write the contract in.

Premium Suburbs Trade Yield for Capital Growth and Liquidity

For context, here is how some of Dallas's most in-demand suburbs compare. These are established areas where investors typically accept lower yields in exchange for capital growth, liquidity, 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 pay a premium for amenity, school zones, and proximity to the central employment core, not for income. Short-term rental yields rise in some of these areas because nightly rates scale with neighborhood prestige and tourist appeal, particularly suburbs near downtown, the Arts District, and the American Airlines Center. That said, Dallas's permit framework requires registration (about $400) and the city has banned short-term rentals in single-family residential zones, although enforcement has been blocked by a court injunction while the matter works through Texas state courts. Investors in premium single-family suburbs should confirm the current legal position before assuming nightly-rate yields, because a ruling that activates the ban would knock the short-term column off the table for these ZIPs.

What the Ranking Does Not Show: Growth, Vacancy, and Data Lag

A high yield can mean depressed prices, not strong rents. Some of the top suburbs in this ranking carry tenant-quality risk, longer vacancy periods between leases, and slower capital appreciation than the city median. Yield equals rent divided by price, but it says nothing about how those two numbers move over time. Premium suburbs often deliver better total returns once capital growth is layered onto income, especially over a 7-to-10 year hold, because Dallas's price-growth concentration historically clusters in established Park Cities-adjacent and northern-corridor suburbs.

Vacancy risk is the second blind spot. Some high-yield southern suburbs have thinner rental pools than Frisco or Plano, meaning a vacancy can stretch from two weeks to two months. Median rent figures also lag in fast-moving suburbs; a ZIP with rising demand may show last quarter's rents while sale prices have already moved. The ranking gives you the snapshot today, but to test how vacancy, different rent assumptions, or a softer price changes the picture, run the scenario for the specific neighborhood you're considering.

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

Dallas Yields Sit 0.3pp above the National Median

Dallas's city-median gross yield of 5.6% sits 0.5pp below the Texas state median of 6.1% and 0.3pp above the national median of 5.3%. The top suburb's 10.5% comfortably beats both benchmarks, while premium inner suburbs trail them. The spread matters more than the headline: investors targeting income can find yields well above national averages without leaving Dallas, but the same metro contains suburbs where yield falls below 3%. The decision is not whether Dallas works for rental investment, but which Dallas ZIP does. Houston faces a similar split between yield-rich southern suburbs and premium northern corridors, and Austin's outer-ring suburbs follow the same affordability-versus-amenity pattern.

Internal references for further reading: market score methodology and data sources.

Data reflects market conditions as of June 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.