Denton County, TX Metro · Texas County Underwriting Brief

Denton County, TX DSCR Property Tax, Windstorm & Transfer Tax Guide

In Denton County, Texas (Denton County, TX metro), 1–4 unit investment properties carry an average effective property tax rate of 1.91% and landlord hazard insurance averaging $830 per $100K of coverage. At a median 1–4 unit acquisition price of $450,000 and Form 1007 market rent of $3,300/mo, a 75% LTV DSCR loan models at 1.03x DSCR ($3,216/mo total PITIA).

Effective Property Tax

1.91%

Est. $716/mo at median

Landlord Ins / $100K

$830/yr

Est. $311/mo DP-3

Median 1–4 Unit Price

$450,000

75% LTV: $337,500

Modeled 75% LTV DSCR

1.03x

$3,300 rent / $3,216 PITIA

Denton County Escrow & Closing-Cost Underwriting Rules

1. Post-Acquisition Tax Reassessment

Texas Annual Market Appraisal: County Appraisal District (CAD) revalues annually as of Jan 1; non-homestead circuit-breaker cap applies to qualifying properties under $5M, with May 15 protest deadline.

2. Windstorm, Flood & Hazard Tier

North DFW Hail / Wind Roof Age Audit

3. Transfer & Mortgage Recording Taxes

Standard county deed recording & nominal transfer fee ($50–$350 flat or ≤0.20% of consideration).

4. CEMA / Doc-Stamp Optimization Strategy

Underwrite post-acquisition tax bill using county millage calculator to prevent Year-2 escrow shortage.