1031 Exchange in Abilene, TX MSA
The Abilene, TX MSA offers a stable real estate market with a focus on government, education, and healthcare sectors, providing unique 1031 exchange opportunities.
Population
178,244 (2023 estimate)
Key Industries
Government, Education, Healthcare
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.7607 per $100 of valuation (City of Abilene, 2024-2025)
Assessment Method
Assessed Value
MSA rate (1.78% (median effective property tax rate in Abilene, Jones County)) vs State average (1.63% (average effective property tax rate in Texas))
+9.2% above state average (based on median effective rates)
Transfer Taxes & Fees
Transfer Tax Rate
None (Texas is one of few states without a transfer tax)
N/A
Local Tax Incentives
Opportunity Zones
Specific areas designated for investment, offering tax benefits on capital gains.
Eligibility: Investment in qualified opportunity funds within designated zones.
Opportunity Zones
Number of Zones
2
Key Locations
- Census Tract 117
- Census Tract 118
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
178,244 (2023 estimate)
Growth: +0.899% annually (2022-2023)
Median Income
$66,464 (2023)
Unemployment
3.0% (April 2025)
Job Growth
1.18% annually (2022-2023)
Economic Drivers
Market Trends
Median Home Price
$250,000 (May 2025)
Average Rent
$1,649 (May 2025)
Cap Rates
5.36% - 11.9% (Multifamily); 3% (Industrial); 8% (Office)
Demographics
Median Age
33.7 years
Bachelor's Degree+
27.2% (2023)
Owner Occupied
55.6% (2023)
Property Type Analysis
Investment opportunities by asset class
Multifamily
The multifamily market in Abilene is experiencing rising occupancy rates and accelerating rent growth, making it an attractive option for investors.
Market Metrics
- Cap Rates: 6.76% (May 2025)
- Vacancy Trends: 6.9% (Q2-2024)
- Demand Forecast: Positive, with increasing demand and limited new supply leading to continued rent growth and stable occupancy. (8.6% YoY rent growth May 2025)
Risk Factors
- Potential for overbuilding in high-growth areas
- Rising property management costs
Opportunities
- Strong demand from growing population
- Attractive yields compared to larger Texas metros
Industrial
The industrial market in Abilene is experiencing growth, driven by manufacturing and logistics. While the vacancy rate has seen a recent increase, the long-term outlook remains positive due to strategic location and business incentives.
Market Metrics
- Cap Rates: 3% (median)
- Vacancy Trends: 7.6% (Q3 2024)
- Demand Forecast: Positive, with continued demand from manufacturing and logistics sectors, and potential for further development. (52% 5-year growth for smaller MSAs in Texas)
Risk Factors
- Volatility in manufacturing sector demand
- Exposure to transportation cost fluctuations
Opportunities
- Strategic location for logistics and distribution
- Business incentives for industrial development
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
South Abilene
Area with significant development and corporate presence, good access to major roadways.
Investment Thesis
Strong potential for growth due to ongoing development and accessibility, suitable for both residential and commercial investments.
Median Price
$350,000
Price Growth
+10.8% YoY
Rental Yield
~5.6% (based on $1,649 average rent and $350K median price)
Days on Market
36 days
Key Highlights
Development Pipeline
Ongoing commercial and residential projects
Wylie
Fast-growing area experiencing rapid development and population influx.
Investment Thesis
High growth potential driven by new construction and increasing demand, particularly for residential properties.
Median Price
$350,000
Price Growth
~+3.9% YoY (Abilene overall)
Rental Yield
~5.6% (based on $1,649 average rent and $350K median price)
Days on Market
40 days
Key Highlights
Development Pipeline
Extensive residential and some commercial development
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Compare Markets
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Compare Markets
| Metric | Abilene, TX (Current) | Wichita Falls, TX | San Angelo, TX |
|---|---|---|---|
| Population | 4.0M | 4.0M | 4.0M |
| Median Property Price | $750K | $750K | $750K |
| Average Cap Rate | 5.2% | 5.2% | 5.2% |
| Job Growth Rate | 2.1% | 2.1% | 2.1% |
| Rental Yield | 4.8% | 4.8% | 4.8% |
| Days on Market | 25 | 25 | 25 |
Frequently Asked Questions
Common questions about Abilene, TX 1031 exchanges
Property taxes in Abilene, TX are based on assessed value. The City of Abilene's property tax rate for 2024-2025 is $0.7607 per $100 of valuation. Texas does not have a state property tax, but local entities (counties, cities, school districts) levy taxes.
No, Texas is one of the few states that does not have a real estate transfer tax. This means buyers and sellers in Abilene do not incur this expense.
Research needed