North Houston Rules of Thumbs and vacancy rates

[Jakub Bednarz]

I was wondering if anyone is using the 50% or 2% rule for the properties in North Houston area (Spring, The Woodlands etc). I am most interested in the 2% rule, and if it works out for this area, or does someone have a different number in mind that works. It seems to me that this area is closer to a 1%-1.5% rule. Just by running numbers on my current rental, which I bought a few years back, and has by now appreciated by approximately 37% since purchase, charging a fair market rent for the area, I am only coming up with like 1.2% test return (based on rent I charge now, and what I paid for the house the day I bought it). I wonder if you use this rule to vet the possible deals and what works for you? 

Also does anyone know what kind of vacancy rates can be expected for the North Houston area? Is around 3% a safe estimate?