Buying Land in Texas as an Investment

Key Takeaways:

• Purchasing a tract of land can be a strong, affordable, long-term investment in Texas. 
• While vacant land doesn’t necessarily bring in income on its own, it does present money-making opportunities for those who choose to invest in them, like selling timber or renting out acres for hunting. 
• When investing in land in Texas, it’s important to work with experts who know the market, so you can make the most of your investment and also secure any appropriate tax exemptions on the property.

This content has been updated as of March 2026.

There are hundreds of ways to invest your money, each with their own level of risk. But buying land is widely considered a reasonable investment if done correctly. Land is a valuable and limited resource that’s always nice to have in your portfolio — not only for the financial benefits, but for your enjoyment as well.

Recreational, raw, or bare land doesn’t cross people’s minds as an investment nearly as often as residential or commercial real estate. It’s simply not as common. However, if you enjoy the great outdoors, this may be the perfect investment for you. Here are some of the financial benefits of owning rural land:

Investing in land can lead to tax deductions

Owning vacant land won’t create income on its own — and often creates expenses (such as property taxes, interest, and other costs). However, you may be able to deduct those costs in certain circumstances.

For example, you may be able to take advantage of a land trust, and donate a conservation easement for a tax deduction. 

If you raise cattle on the land, you may be able to take advantage of an agricultural tax valuation, otherwise known as an ag exemption. This special valuation decreases your property’s taxable value, which helps lower your property taxes. 

Ag exemptions are also available if you invest in land with wildlife, then rent the acres out for hunting. 

Of course, you’ll want to employ a tax advisor to learn more about the ins and outs of potential exemptions prior to purchasing.

Land can be a hands-off investment 

Unlike investing in real estate, a land investment won’t include problems with tenants, lawn care, leaking roofs, bursting pipes, and all the other joys that come with traditional rental properties. Maintenance on vacant land can be low, saving you time and money.

Land is an affordable long-term asset

When you buy vacant land for the right price, it can be a relatively cheap investment that pays off in the long run. There will be few, if any, utility bills to pay, property insurance is affordable, land won’t fall apart or wear out, and property taxes can be reasonable in the right area. If you’re looking for an investment with high probability of value appreciation over time, land may be the right purchase for you.

Investing in timberland can bring in extra profits

Buying land from timber companies is an option that many overlook. Timber companies own many desirable acres, and choosing to purchase some of this land can lead to profit opportunities in the future. You’ll definitely want to employ the right experts, including a timber company experienced in this type of sale, a real estate broker specializing in rural real estate, and a lender like Texas Farm Credit with timber experts on staff.

A land investment in Texas can lead to rental opportunities 

Leasing your land may also be a way to make short-term money off your property. You may consider renting for camping, hunting, fishing, ATVing, or sports fields. Of course, if you begin this process, you may need to consider additional expenses, zoning rules, and necessary permits. However, when you work with experienced people and do plenty of research beforehand, your land investment could lead to both short- and long-term gains.

Investing in land often means investing in your own enjoyment

Although rural land ownership can benefit you financially, the biggest benefit will be the joy it can bring to you and your family! Recreational land can be used for so many activities that get you outside and into nature. If you enjoy ATVing, camping, hunting, or other outdoor recreational activities, then purchasing vacant land will give you the opportunity to participate whenever you want. 

Ultimately, the real benefit of recreational land is in your hands.

Get help from the experts

If you’ve made the decision to find and purchase a piece of land, it’s important to find a lender like Texas Farm Credit that understands this market and is able to determine land value accurately. 

We typically finance up to 20 years with no prepayment penalties. As a cooperative, Texas Farm Credit is owned by its borrowers, which means you’ll share in our profits and enjoy lower interest rates. 

We’d love to help you find the freedom and flexibility that owning land offers. Reach out to our team today.

Frequently Asked Questions

Is buying land in Texas a good investment?

Buying land is almost always considered a strong investment.

Considering the amount of undeveloped land is decreasing quickly, this type of property will likely only increase in value. This is especially true for land in more desirable areas experiencing rapid expansion.

Undeveloped land is also much less expensive to maintain, property taxes are generally low in Texas, and vacant land presents a wide array of possibilities for future use. 

What is the downside of buying land? 

Depending on how you want to use your land, it’s possible you’ll need to go through bureaucratic processes to secure the right permits or navigate specific zoning regulations. 

If you’re looking for quick payoffs in the short run, land might also not be the right choice. Land is generally considered a longer term investment, where the biggest returns could take years to realize. 

It’s possible land won’t bring you any income. However, if you decide to rent your rural land out for hunting, recreational activities, or even billboards, you could start to see more regular cash flow.

Do you pay taxes on land you own in Texas? 

Luckily, Texas has not state property taxes. However, your local county may assess its own taxes on land you own. Check with your local government or appraisal office to determine what your tax rate might be. 

Land can also come with specific tax exemptions, including for agricultural use or for homesteading. These special valuations can lower the amount you pay in property taxes.

How much is one acre of land worth in Texas? 

Land values can vary widely across Texas depending on the region, terrain, and potential use. Prices for an acre can range from less than $1,000 to around $15,000. Check out our most recent land guide to evaluate which regions of the state might fit your budget.

Where is the cheapest place to buy land in Texas?

Cheaper acres can usually be found in Far West Texas, or in the Panhandle and South Plains area. Land in these regions usually averages less than $2,000 an acre, compared to the overall state average of more than $5,000/acre.