Invest In Apartment Buildings In Wichita Falls, TX

What Drives Renting In Wichita Falls

Wichita Falls rents more than Texas does. The U.S. Census ACS 2020–2024 counts 16,637 renter households, 43.6% of the total, against 37.4% statewide. The renter count rose 2.1% in five years even though the population slipped 1.6% to 102,581, and the number of employed residents grew 4.3%. Median household income climbed 26.8% to $60,177, unemployment is 3.8%, and 44.5% of renter households spend 30% or more of income on housing.

Sheppard Air Force Base is the reason this market behaves differently from other small Texas cities. HUD's April 2024 market profile calls it the largest training base in the Air Force's Air Education and Training Command and lists it as the area's largest employer, with 7,225 workers. The Texas Comptroller put its local economic impact at $3.6 billion in 2021. A training base brings a steady flow of airmen and instructors who need housing, and military housing allowances support rents near the base. United Regional Hospital (about 2,100 employees in HUD's 2024 count) and Midwestern State University (about 1,200 employees) are the next two anchors. MSU also brings students into older neighborhoods around campus.

The Comptroller's 2025 update gives a closer look at who works there. It counted 5,136 direct jobs at Sheppard, a narrower measure than HUD's 7,225, including 1,963 active-duty, Guard and reserve members, 1,634 full-time civilians and 1,525 contractors, plus 4,567 dependents and an average daily student load of 3,883 trainees. It estimated total employment of 13,024 and output of about $2.8 billion, a lower figure than 2021's, so treat the two years as separate estimates rather than a trend. The base also has its next mission settled. In August 2026 the Air Force signed a decision to base up to 131 T-7A Red Hawk jets at Sheppard for the Euro-NATO Joint Jet Pilot Training Program, replacing its T-38s from 2034 through 2037, AVweb reported. The swap only adds about 100 temporary personnel, but it ties the pilot school to the base for another generation of aircraft.

For owners, the takeaway is a renter base tied to federal payroll more than to oil prices or a single private employer. That steadies demand, but it also means a base realignment or a change in training volume would be felt quickly. Manufacturing adds a smaller layer: in May 2024, Westlake Pipe and Fittings announced a 190,000-square-foot expansion on Industrial Drive with at least 38 new jobs, which the local chamber called the largest single manufacturing investment in the city's history.

Supply, Vacancy And Rents In Wichita Falls

Median gross rent in Wichita Falls is $1,022 a month (U.S. Census ACS 2020–2024), up 28.7% from $794 in the 2015–2019 survey and well below the Texas median of $1,403. The market is soft on occupancy. The Census rental vacancy rate is 10.8%, and HUD's 2024 profile, citing CoStar, put metro apartment vacancy at 11.3% in early 2024, up from 10.1% a year earlier, with average rent of $880 rising nearly 4%. Off-campus student housing vacancy was 8.0%. When Census and broker figures land this close together, the weakness is real and not a quirk of the survey, though ACS estimates do carry a margin of error.

Part of the softness came from a burst of building. The Census counts 7,905 homes in buildings with five or more units, 18.2% of the housing stock, and that count rose 15.2% in five years. HUD reported 270 rental units permitted in 2022, the most in any year since 2007, then just 60 in the 12 months ending March 2024. The 216-unit Brook Hollow on Southwest Parkway was finishing in 2024, and in October 2022 construction began on a downtown conversion above the Highlander restaurant with 115 student units for MSU and 55 apartments. About 43% of rental units built in the metro since 2014 have been subsidized affordable housing.

With permits down sharply after 2022, new deliveries should taper as the recent projects lease up. Investors looking at apartment syndications in Wichita Falls should underwrite conservative occupancy and focus on the city's older stock, since the median year built is 1972 and rents at new properties run well above the city average.

Wichita Falls Neighborhoods We Watch

The rental map splits between the older central city near MSU and newer growth to the southwest.

Where Wichita Falls Stands Among Its Peers

Among the 133 Texas cities we track, Wichita Falls ranks 121st for median gross rent, 43rd for renter share and 83rd for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. Put in counts rather than percentages, that is roughly 1,698 fewer residents, 342 more renter households and 1,043 more homes in buildings with 5 or more units than five years earlier. New homes in 5+ unit buildings outpaced the growth in renter households, so newer buildings are competing for tenants and older ones may need to offer more to keep them.

How Wichita Falls Compares With The Texas Average

Wichita Falls's median gross rent of $1,022 is below the Texas median of $1,403, and its renter share is 43.6% compared with 37.4% statewide.

Rent Versus Income In Wichita Falls

At $1,022 a month, the median Wichita Falls rent adds up to $12,264 a year, or roughly 20.4% of what the median household earns. Under the common 30% guideline, a household needs about $40,900 a year to cover that rent comfortably. That's a lighter load than the Texas average of 21.5%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

In dollars, Wichita Falls rent climbed $228 a month over five years and household income climbed $12,719 a year. The two have moved together, so affordability today looks much like it did five years ago.

Wichita Falls Apartment Market Key Facts

These are the core numbers for Wichita Falls, TX, each from the Census Bureau's American Community Survey.

• Wichita Falls, TX has 102,581 residents, down 1.6% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Wichita Falls, TX is $60,177, up 26.8% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Wichita Falls, TX is $1,022 a month, up 28.7% over five years (U.S. Census ACS 2020–2024).
• 43.6% of households in Wichita Falls, TX rent, about 16,637 renter households (U.S. Census ACS 2020–2024).
• 18.2% of homes in Wichita Falls, TX are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Wichita Falls, TX is 10.8%, and 44.5% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Wichita Falls, TX was built in 1972 (U.S. Census ACS 2020–2024).

What We Look For In A Wichita Falls Apartment Building

We look at buildings with 5 or more units in Wichita Falls, from small walk-ups to larger garden-style communities, in stabilized or value-add condition. We compare in-place rents with nearby buildings, inspect roofs, plumbing and HVAC, and ask whether better management or targeted renovation can close the gap with the market.

Texas has no state income tax on wages, and property taxes are often one of the largest expenses for apartment owners. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Texas has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Texas reflect hurricane and flood exposure and hail and wind damage, so we get a quote before we make an offer.

After a stretch of fast rent growth, we keep rent assumptions modest and leave room for concessions if new supply opens nearby.

Questions To Ask About An Apartment Syndication In Wichita Falls

The data on this page turns into a short checklist for evaluating an apartment syndication in Wichita Falls.

• What vacancy does the plan assume? Rental vacancy in Wichita Falls is 10.8%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 28.7% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Wichita Falls was built in 1972, so roofs, plumbing and electrical systems deserve their own line items.
• How will the building compete with new supply? Homes in 5+ unit buildings in Wichita Falls rose 15.2% over five years, so newer properties are part of the competition.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Wichita Falls Apartment Syndication Works

Two groups make an apartment syndication work. The sponsor, or general partner, handles the deal: finding the building, financing it and running the business plan. The limited partners are passive investors who contribute capital and share in the property's results under the offering's terms.

Expect your money to be tied up for years, with no easy way to sell your share early, and remember that any investment can lose money. Most deals are open only to accredited investors under Rule 506(b) or 506(c). See investing with Skyline Capital for how we work with limited partners.

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