Dallas is among the few American cities where renting is more reasonable than buying. With just over 153,000 students calling Dallas home, six colleges within the city limits, and twenty colleges within a 50-mile radius, it’s no wonder Dallas student housing for rent is in high demand.
Real estate investors also have the city on their radar. Housing affordability in Dallas is mid-range, explaining the increase in renter-occupied households that now account for 44% of the total market. Rentals in Dallas also increased by an average of 14% last year, meaning the best time to purchase an income property is now.
Here are our top picks for where to look in Dallas if you are considering buying a rental property for students.
Pro Tip: While renting to students can be profitable, this niche market can come with some specific needs that will keep you busy. Baselane’s analytics tools help you stay on top of your rental property finances and give you peace of mind.
1. Lower Greenville
- Median home price: $725,000
- Median price per square foot: $275
- Rental vacancy rate: 11.7%
- Closest college: Criswell College
- Distance to UTA: 1.6 miles
- Public transportation in area: Bus, DART
- Median rental income: $1,275/month
Welcome to Lower Greenville. Better known as the historic home of the city’s jazz scene, the vibrant nightlife will keep your entertainment meter maxed out with some of the best bars and restaurants in Dallas. This former rough-and-tumble neighborhood has become a thriving community of over 24,000 residents with a median household income sitting around $84,122 per year.
This solid Dallas zip code is great for young professionals and students alike, with plenty of colleges and universities in the surrounding area. The daily commute to universities is short, and average rent prices are $1,275 a month for a one-bedroom apartment. While the average rent still fits student friendly budgets, it’s a 24% increase compared to the previous year.
Recently, Lower Greenville entered the Top 100 “Cool Streets” in the US and Canada list, pushed by millennials for its walkability, access to public transportation, and locally owned shopping centers. With 58.71% of the Lower Greenville population made up of students, real estate investors can capitalize on low vacancy rates and rental properties that account for 68.73% of the real estate market.
2. Uptown
- Median home price: $625,000
- Median price per square foot: $289
- Rental vacancy rate: 11.5%
- Closest college: Dallas College El Centro Campus
- Distance to UTA: 2 miles
- Public transportation in area: Bus, streetcar, DART
- Median rental income: $1,950/month
Uptown has been the hub of innovation since the early 90s and is still the OG cool spot for over 20,000 residents. In a city that makes owning a car a must, the pedestrian-friendly design caters to the large Uptown, Dallas student population (58%). Residents can enjoy the cosmopolitan perks for an affordable price tag of $1,950/month to rent a one-bedroom unit.
The Uptown area has a rich inventory of rental properties taking up 80% of the housing market.
As a Public Improvement District (or PID), the taxes are slightly higher but reasonable for an average household income of $151,241. The extra funding pays for perks like
increased security, maintenance and landscaping, community events and activities, and free transportation.
The median cost to buy a home is $625,000, and this is a bit more expensive than in other areas in Dallas, which makes renting an attractive option. Since there are no rental control laws in Texas, landlords have no restrictions on raising rent prices. You just need to provide adequate notice to tenants in line with the lease terms. For example, month-to-month leases for Dallas student summer housing only require a 30-day notice.
3. Deep Ellum
- Median home price: $528,000
- Median price per square foot: $229
- Rental vacancy rate: 3.8%
- Closest college: Criswell College
- Distance to UTA: 0.9 miles
- Public transportation in area: bus, streetcar, DART
- Median rental income: $1,915/month
Established in 1873, the creative vibes set Deep Ellum apart from other artsy hoods. Located east of downtown, you’ll be greeted with a smile, a beer, and maybe even a paintbrush. This trendy area has over 6,000 locals, most of whom are opting to pay rental increases of 25% from last year in order to stay in the neighborhood.
Not only does the neighborhood have excellent walkability, but it also has access to the DART Green Line and free parking until 6 pm daily. With an array of entertainment and live music venues, there are plenty of places to eat, drink, and celebrate.
Types of housing in Deep Ellum include luxury apartments, sleek condos, and detached single-family homes. With a relatively average market price of $528,000 for new listings and 85% of households occupied by renters, this area is a great spot to invest.
4. Bishop Arts District
- Median home price: $409,000
- Median price per square foot: $289
- Rental vacancy rate: 13.4%
- Closest college: Dallas College El Centro Campus
- Distance to UTA: 3.1 miles
- Public transportation in area: bus, streetcar
- Median rental income: $1,400/month
This hidden gem located southwest of Dallas along I-35E is home to the Dallas Zoo and the Texas Theatre. It offers big-city conveniences to over 3,000 residents without losing its historical aesthetic and small-town charm. The 10-block district boasts a diverse and lively arts scene that rivals larger hubs like Austin, Texas, and New York.
A big reason the neighborhood’s revitalization was so successful is the free DART-run Dallas streetcar that runs through the area. With high walkability and public bus stops on every corner, students have easy access to El Centro College and Mountain View College.
The most popular types of rentals are single-family homes and condominiums. A newly constructed one-bedroom unit will earn upwards of $1,400 compared to older one-bedroom rentals that can rent for around $900/month. The median listed home price of $409,000 is below the district average, with an increase of 30.77% in price per sqft over the past 12 weeks. This presents the potential of a lower cost of entry with a high return on your real estate investment.
5. Knox-Henderson
- Median home price: $515,000
- Median price per square foot: $264
- Rental vacancy rate: 18.5%
- Closest college: Wade College
- Distance to UTA: 1 mile
- Public transportation in area: bus, DART
- Median rental income: $1,165/month
Nestled between Uptown and Lower Greenville sits the vibrant but cozy streets of Knox-Henderson. It’s hard to name something this area doesn’t offer its community of nearly 14,000, with culture, green spaces, and tons of local restaurants.
Knox-Henderson is known for its safe, walkable streets that run along the 3.5-mile Katy Trail, where residents can run, bike, and skate. The neighborhood is predominantly occupied by singles and young professionals, subdivided into 5% families with children, 38% single-female families, 29% single-male families, and 33% couples.
For landlords in Knox-Henderson, the most dominant real estate investment is single-family homes, but these can be rented to students as well. The median listing home price is $515,000, an increase of 13.8% year-over-year. There are options for condominiums and lofts. You can expect to collect rent payments of $1,200 for a one-bedroom and $1,800 for a two-bedroom.
6. Oak Lawn
- Median home price: $599,000
- Median price per square foot: $273
- Rental vacancy rate: 18.3%
- Closest college: Wade College
- Distance to UTA: 3.3 miles
- Public transportation in area: bus, streetcar, DART
- Median rental income: $1,786/month
Oak Lawn is one of the larger neighborhoods to make the list, with a population of over 30,0000. Settled just northwest of downtown, this area is the center of the Dallas LGBTQ+ community with luxury living and a diverse nightlife scene.
This upscale district is tucked away between the I-35 and US-75, bounded by Harry Hines Boulevard and Mockingbird Lane to the west and north, and Tuttle Creek Boulevard and Westside Drive to the east. You’ll find a wide variety of housing options, from high-rise apartments and condos to luxury townhomes and charming duplexes, with 60% of units occupied by renters.
Over the last year, the average rental price for a one-bedroom increased by 13% to $1,786. Resale prices for local properties are relatively affordable, but high vacancy rates of 18.3% and rising median rental prices cause some concern for finding new tenants. If you are looking to rent to purchase income properties that attract higher-income renters students, it will be difficult to find renters who are on a budget. But, for tenants looking for a little more luxury, this area is the perfect find.
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FAQs
Dallas, along with nearby communities, is home to 45 colleges and universities that attract more than 250,000 students every year. Public universities include the University of Texas at Dallas and the University of North Texas. Private colleges and universities include the Southern Methodist University and Texas Christian University. The Dallas County Community College District also has seven colleges that enroll nearly 100,000 students each semester.
Some Dallas landlords offer short-term leases to students looking for month-to-month accommodations or a term of six months. Rental agreements in Texas are only required for tenancies that are 12 months or longer. However, it is recommended that you have a signed agreement for short-term leases for added security. You may opt to include added restrictions for security deposits and modifications like painting or hanging pictures.
Subleasing can help with consistent rental income, but there are risks, including property damage, inconsistent tenant screening, and late rent payments. The Texas Property Code states that landlords are not required to allow subleasing. If the tenant subleases without your permission, you have the right to evict the subtenant and sue both the subtenant and original tenant for damages. If the lease terms allow subleasing, the original tenant becomes the new landlord to the subtenant and assumes all liability.
