Low Income Capitalization Rate

The Texas Property Tax Code requires all property to be appraised at one hundred percent (100%) of market value.  According to the Texas Property Tax Code, the chief appraiser is required to use the income method to appraise property qualified as low-income housing under Section 11.1825.  The appraiser must specifically consider the restrictions on who may rent the property and the amount of rent to be charged.  As of January 31 of each year, the district must give public notice of the cap rate to be used on all qualified low-income housing properties.  The 2026 capitalization rate for Kendall Appraisal District is between 8% and 10%.  Adjustments may be made based on the individual characteristics and the information provided to the chief appraiser as required under sections 11.1825 and 11.1826.