DFW investors defer the federal gain (no Texas income tax) and trade active rentals for passive institutional real estate.
The typical Dallas home is worth about $310,000 (-2.0% over the past year, per Zillow's home value index). For owners of appreciated Dallas investment property, a sale can trigger a large tax bill — which a 1031 exchange into a Delaware Statutory Trust can defer while moving you out of active management.
Dallas market snapshot
Home value & YoY: Zillow Home Value Index, 2026. Cap-rate range approximate — verify for your asset and submarket.
The tax on a Dallas sale
Texas has no state income tax, so a Dallas sale is taxed only federally — 20% long-term capital gains plus the 3.8% net investment income tax, about 23.8% of the gain. A 1031 exchange into a DST defers all of it.
See the full Texas 1031 rules, tax math, and state-specific reporting →
Baker 1031 near Dallas
Realized programs on Dallas-area property. Sponsor-reported, net-to-investor, not independently verified; past performance ≠ future results.
| Program | Sponsor | Avg annual | Equity × | Hold |
|---|---|---|---|---|
| Wilkinson Spring Parc | Bluerock | 11.33% | 1.14x | 1.25 yr |
| Peak Housing Operating Partnership | Bluerock | 9.50% | 1.23x | 3.67 yr |
Dallas FAQ
What's the typical home value in Dallas?
The typical Dallas home value is about $310,000 (-2.0% year-over-year, per Zillow's home value index, 2026). Owners of appreciated Dallas rental or investment property often use a 1031 exchange into a DST to defer tax and move to passive ownership.
Do Dallas sellers owe state tax on a gain?
No. Texas has no state income tax, so a Dallas property sale is taxed only federally — up to 23.8% on the gain — which a 1031 exchange can defer.
Does a DST have to be located in Dallas?
No. A DST doesn't have to hold Dallas (or even Texas) property — you can exchange your Dallas sale proceeds into vetted DST offerings anywhere in the country. We match the replacement to your goals, not your ZIP code.
Disclosures
This page is educational and is not investment, tax, or legal advice, or an offer to sell or a solicitation to buy any security. Home-value data is from Zillow's home value index (2026) and cap-rate ranges are approximate — verify current figures. State tax rules are summarized; confirm with your CPA and attorney. For accredited investors only. Representatives may transact business only in states where registered or exempt. Securities offered through Aurora Securities, Inc., member FINRA/SIPC; Baker 1031 Investments, LLC is independent of Aurora. Past performance does not guarantee future results.