What is the rental yield in The Drag, Austin, Texas?

The gross yield in The Drag, Austin, Texas is 7.2%. That is paired with walkability of 93 and pricing about 16% above Austin and 108% above Texas. Prices are down 16.9% over the past year, and the Red Flag score is 53.

How has pricing moved in The Drag over the past year?

Pricing in The Drag, Austin, Texas is down 16.9% over the past year. Even with that decline, the neighborhood remains about 16% above Austin and 108% above Texas. Gross yield is 7.2%, walkability is 93, and the Red Flag score is 53.

How does The Drag compare with Austin and Texas?

The Drag in Austin, Texas is priced about 16% above Austin and 108% above Texas. It also has a gross yield of 7.2% and walkability of 93. Education is in the 46th percentile, prices are down 16.9% over the past year, and the Red Flag score is 53.

Neighborhood

The Drag

Austin, Texas US

The Drag in Austin, Texas combines a premium pricing profile with a gross yield of 7.2% and prices down 16.9% over the past year. Pricing sits about 16% above Austin and 108% above Texas, while walkability is 93 and education is in the 46th percentile. The Red Flag score of 53 suggests a moderate risk profile. Strong walkability and yield are offsets, but the recent price decline is a key consideration.

AI Summary•Updated May 2026

Area

0.62 mi²

ZIP Code

78705

County

Travis County

State

Texas

Redfin — median sale & volumeZillow ZORI — asking rentFEMA National Risk Index v1.20OpenStreetMap — POIFBI UCR — state crimeEPA — radon zonesWashU ACAG — satellite PM2.5EPA FRS / BTS — hazard screeningUS Census ACS / TIGER 2024

Verified Price · Median Sale

$304,410

YoY-16.9%

Gross Rental Yield

7.2%

Listed rent · ZORI annualized

Red Flag Index

Moderate

53 / 100

Walkability Score

Walker's Paradise

OpenStreetMap POI density · national percentile

Education Score

46 / 100

Fair · better than 46% of U.S. districts

Pre-pandemic SEDA (2018/19) · district proxy

AI Score

Good

DistrictScore attractiveness · national model

The Drag Property Prices & Rental Yield

Verified Redfin sale data and Zillow ZORI asking rent for The Drag, Austin.

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Market Economics Snapshot

May 2026

Metric	Value	YoY
Median Sale Price	$304,410	-16.9%
Price / Sq Ft (Verified)	$352/sqft	-15.6%
Asking Rent (Median)	$1,822/mo	+7.1%
Gross Rental Yield	7.2%	—
Liquidity Score	22 / 100	Low
Homes Sold (Period)	45	-40.8%

Is The Drag Safe? Natural-Hazard Risk

FEMA National Risk Index composite across eight hazards, plus inherited Texas crime context.

Red Flag Breakdown

53 / 100

Moderate Risk

Composite is weighted by expected impact — frequent low-damage hazards (hail, wind) weigh less than flood or wildfire.

Tornado100Very High

Heat100Very High

Hail100Very High

Hurricane60High

Strong Wind60High

Flood40Moderate

Wildfire20Low

Earthquake20Low

8/8 hazards scored · FEMA NRI v1.20

Crime (state-level): Texas averaged 24.3 crimes and 3.9 violent per 1,000 residents (-6.2% YoY) in 2024(FBI UCR). Compare the state to the country, not states as a ranking — full Safety & Crime data lives on the state page.

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Tract-level hazard heatmap & parcel detail with Pro

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What Stands Out AI Insight

Above-average gross rental yield at 7.2%

Highly walkable neighborhood — score 93/100

Active transaction volume — 45 homes sold last period

Dense amenities — 58 dining & 13 grocery options nearby

Tornado risk is Very High (100/100)

Heat risk is Very High (100/100)

Insights are generated from The Drag's live DistrictScore metrics.

The Drag Environment & Safety

Satellite PM2.5 air-quality history, FBI UCR crime trend (Texas-level, the finest official aggregation), EPA radon potential and point-source hazard screening.

Air Quality — PM2.5

2015–2024

7.4 µg/m³ Meets EPA, above WHO guideline+22.4% since 2015

EPA 9WHO 5

20152024

Annual mean fine-particle (PM2.5) concentration at the The Drag centroid, satellite-derived (ACAG). References: WHO guideline 5 µg/m³ · EPA annual standard 9 µg/m³. Latest year ranks worse than 90% of U.S. neighborhoods.

Texas Crime Trend

FBI UCR

20132024

All crimes / 1k

Violent / 1k

Year	Crimes / 1k	Violent / 1k	YoY
2024	24.3	3.9	-6.2%
2023	26.4	4.1	-1.7%
2022	27.4	4.4	+6.3%
2021	26.3	4.5	-1.8%
2020	26.9	4.5	-3.6%
2019	28.3	4.2	—

Reported at the state level — the finest official US crime aggregation; The Drag inherits the Texas figures.

Radon Potential

EPA

Zone 3

Zone 3 — Lowest potential · The Drag

EPA radon zones estimate indoor radon potential county-wide (Zone 1 highest, Zone 3 lowest). Testing is recommended in all zones.

Environmental Hazards

EPA / BTS

Industrial odor2 nearbyModerate

Point-source screening near The Drag: EPA Superfund National Priorities List & Facility Registry (2026), BTS aviation noise (2020, 24-hour average level). Superfund shows distance to the nearest listed site; odor shows detected sources within the screening radius. Only detected sources are listed; the bar shows severity vs. all U.S. neighborhoods.

Walkability & Amenities in The Drag

Amenity density and pedestrian access from OpenStreetMap points of interest.

Walkability & Amenities

OpenStreetMap POI

93

Walker's Paradise

Walkability Score

13

Grocery

58

Dining

3

Schools

4

Universities

1

Hospitals

1

Pharmacies

6

Parks

0

Rail Transit

0

Coworking

POI counts are amenities within The Drag's boundary plus a 400 m walk buffer. Rail transit excludes bus stops.

The Drag vs Austin vs Texas

How The Drag benchmarks against its city and state medians.

Benchmark vs City & State

Across The Drag, the median sale price sits about 16% above the median for Austin neighborhoods and about 108% above the statewide median. Gross rental yield is 7.2%, against 3.8% for Austin neighborhoods and 5.4% statewide. Over the past 12 months, prices fell 16.9%. Transaction liquidity sits below the median for Austin neighborhoods and below the statewide median.

Area	Median / Sq Ft	Gross Yield	Liquidity
The Drag	$352/sqft	7.2%	22
Austin	$303/sqft	3.8%	28
Texas	$169/sqft	5.4%	39

Unlock the The Drag benchmark

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Buying Property in the US as a Foreigner

Federal & Texas tax facts for non-resident buyers, plus the latest local market news.

Buying as a Foreigner

US Tax & Ownership

Applies to everyone7

Capital Gains (Federal)

Long-term capital gains taxed federally at 0/15/20%, plus a 3.8% Net Investment Income Tax on higher incomes (2026).

Property Tax

Property tax: ~1.25% average effective rate (statewide average; set and collected locally).

State Income Tax

No state income tax — rental income is not taxed at the state level.

State Capital Gains

No state capital gains tax.

Transfer Tax

Real estate transfer tax: none statewide (local tax may apply).

Assessment Cap

Homestead assessed value capped at +10%/yr (20% for some non-homestead property, through 2026).

Mansion Tax / Rent Control

No statewide mansion tax or statewide rent control.

US citizens & tax residents8

Primary-Home Exclusion

Selling your main home: exclude up to $250k of gain (single) / $500k (married) if you owned and lived there 2 of the last 5 years.

1031 Like-Kind Exchange

A 1031 like-kind exchange defers capital gains tax on investment property; 45 days to identify, 180 to close. Real estate only.

Depreciation Recapture

Residential rentals depreciate over 27.5 years; on sale, recaptured depreciation is taxed up to 25% (Section 1250).

Mortgage Interest Deduction

Mortgage interest is deductible on up to $750k of home debt. The SALT cap rose to $40,000 for 2025-2029 (reverts to $10k in 2030).

Opportunity Zones

Opportunity Zones are now permanent (2025): reinvested capital gains get deferral plus a basis step-up, and are tax-free after 10 years.

Rental Income (Resident)

Rental income is reported on Schedule E; passive-loss rules (Section 469) limit deducting rental losses against other income.

Homestead Exemption

Homestead: unlimited protection from most creditors (acreage-limited) and a large school-tax exemption.

Senior & Veteran Exemptions

Full property-tax exemption for 100%-disabled veterans; a school-tax freeze for seniors aged 65+.

Foreign buyers (non-residents)6

FIRPTA (Foreign Sellers)

FIRPTA: the buyer withholds 15% of the gross sale price when a nonresident sells US property. It is an advance deposit, not the final tax.

Non-Resident Capital Gains

Nonresident sellers pay US capital gains tax (generally 15-20%) on the net gain via Form 1040-NR; FIRPTA withholding is credited.

Non-Resident Rental Tax

Nonresident rental income is taxed at 30% of gross by default, or on net income at graduated rates via a Section 871(d) election (W-8ECI).

Estate Tax (Non-Resident)

Nonresidents get only a $60,000 US estate-tax exemption (vs $13.99M for residents); US property above it is taxed up to 40%. Treaties may help.

ITIN Requirement

Nonresidents without an SSN need an ITIN (Form W-7) to file US tax returns, claim FIRPTA refunds, and report rental income.

Foreign Ownership Restrictions

SB 17 (Sept 2025) bars buyers tied to China, Russia, Iran, or North Korea from acquiring any real property. Verify first.

Talk to a US real-estate tax advisor

FIRPTA, ITIN & Texas property-tax guidance for foreign buyers

Latest Austin Real-Estate News

New Fed chairman may leave mortgage rates mostly unchanged

Guaranteed Rate • Jun 18, 2026

Household real estate wealth hits record $48.7 trillion

Eye On Housing • Jun 18, 2026

U.S. commercial property prices hit record as deal patterns shift

Altus Group • Jun 18, 2026

The Drag Real Estate FAQ

The Drag in Austin, Texas has a mixed profile. Gross yield is 7.2%, walkability is 93, and prices are about 16% above Austin and 108% above Texas. However, prices are down 16.9% over the past year, and the Red Flag score is 53, which indicates a moderate risk reading.

Neighborhoods near The Drag

Compare The Drag with nearby neighborhoods in Austin.

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