Engine-derived ROI data from 5 representative Dallas-area properties. Methodology transparent below. CC-BY 4.0, journalists, CPAs, and researchers may cite this dataset with attribution.
Important framing: These are engine outputs for representative fixture scenarios, not predictions about any specific property. The cost segregation engine takes real property data (address, year built, square footage, renovation history, assessor records) and produces a study tailored to your actual property. The aggregate numbers shown here describe the Dallas market's general profile; your specific results will reflect your specific property.
Each fixture was run through the Cost Seg Smart engine, the same engine that produces real customer studies. Numbers below are reproducible from cities/dallas.json via scripts/run_city_stats.py.
| Property | Neighborhood | Price | Basis | Land % | 5-yr | 15-yr | Reclass % | Y1 fed savings @ 37% |
|---|---|---|---|---|---|---|---|---|
| Bishop Arts Bungalow Flip SFR · Built 1928 |
Bishop Arts / Oak Cliff | $525,000 | $405,668 | 22.7% | $34,285 | $28,248 | 15.4% | $23,137 |
| M Streets Tudor Rental SFR · Built 1934 |
M Streets / Lakewood | $685,000 | $518,202 | 24.3% | $47,935 | $35,205 | 16.0% | $30,762 |
| Uptown Condo Investor CONDO · Built 2012 |
Uptown / Oak Lawn | $525,000 | $406,718 | 22.5% | $43,049 | $3,800 | 11.5% | $17,334 |
| Frisco Suburban SFR Rental SFR · Built 2009 |
Plano / Frisco (suburban Collin County) | $425,000 | $338,088 | 20.4% | $32,769 | $23,461 | 16.6% | $20,805 |
| Arlington Fourplex BRRRR FOURPLEX · Built 1988 |
Arlington / Grand Prairie (Tarrant County, suburban) | $585,000 | $456,885 | 21.9% | $62,642 | $26,864 | 19.6% | $33,117 |
| Engine property type | Fixtures | Median reclass % | Min | Max |
|---|---|---|---|---|
| SFR | 3 | 16.0% | 15.4% | 16.6% |
| CONDO | 1 | 11.5% | 11.5% | 11.5% |
| FOURPLEX | 1 | 19.6% | 19.6% | 19.6% |
"STR" denotes residential property operating as a short-term rental, the engine applies an FF&E density uplift not captured in the LTR (long-term rental) treatment.
| Neighborhood | Typical value | Typical land allocation | Profile note |
|---|---|---|---|
| Bishop Arts / Oak Cliff | $525,000 | ~26% | Pre-war 1920s–1940s bungalow and craftsman stock heavily renovated post-2010. Strong fix-and-flip activity. Higher land allocation due to gentrification-driven scarcity premium. Mix of fix-and-flip and SFR rental. |
| M Streets / Lakewood | $685,000 | ~30% | Historic streetcar-suburb neighborhoods east of downtown Dallas. 1920s Tudor and Colonial Revival stock. Higher land allocation, established neighborhood-scarcity premium. Mix of fix-and-flip and high-end SFR rental. |
| Uptown / Oak Lawn | $525,000 | ~32% | Downtown-adjacent mid-rise condo dominant. Post-2010 new construction with cleaner reclassification ratios. Higher land allocation reflecting urban-core scarcity. Mid-rise condo investor market. |
| Plano / Frisco (suburban Collin County) | $425,000 | ~22% | Suburban SFR market north of Dallas in Collin County. Tech-employer-driven rental demand. Lower land allocation. Strong LTR rental cash flow. Collin County jurisdiction, separate from Dallas city regulation. |
| Arlington / Grand Prairie (Tarrant County, suburban) | $285,000 | ~18% | Lower-cost SFR rental market between Dallas and Fort Worth. Lowest land allocation. Strong BRRRR and build-to-rent activity. Tarrant County jurisdiction with permissive regulation. |
The "typical land allocation" column reflects baseline patterns for each sub-market based on county assessor records and statistical modeling. For specific properties where reconstruction cost (RSMeans 2024 component build-up adjusted for time and geography) exceeds 2.0× the implied depreciable basis after subtracting the baseline land, the engine applies a premium land floor (~50%) to keep the study within audit-defensible territory. This typically affects ultra-premium resort inventory (ski-in/ski-out, beachfront, view-premium properties), where land scarcity premium dominates the purchase price. The per-fixture table above shows the actual land_source used by the engine for each fixture, values of statistical_premium_floor indicate the premium-floor mechanism was applied.
The takeaway: typical neighborhood allocations describe the market baseline. Individual property results depend on specific reconstruction-cost-vs-purchase-price ratios, and ultra-premium product may show higher land allocation in the engine output than the neighborhood typical.
Texas has no state individual income tax, federal §168(k) bonus depreciation is the entire tax story for Dallas investors. No state addback, no decoupling math, no Schedule X reconciliation. Combined with 100% federal bonus depreciation under OBBBA, this is among the cleanest cost-seg tax positions in the country.
State income tax structure: No state individual income tax (constitutional prohibition)
Verify with your CPA. State tax conformity for federal §168(k) is adjusted frequently. Framing reflects our understanding as of May 2026, verify current-year treatment with a qualified tax professional.
Every figure on this page is reproducible. The pipeline:
cities/dallas.json under the engine_fixtures array, each with address, property type, purchase price, year built, square footage, and STR/LTR flag.scripts/run_city_stats.py instantiates a PropertyInput for each fixture and calls engine.run_study(), the same path that produces a real customer study.For full methodology details including QC validation, reconciliation logic, and audit-defense documentation, see costsegsmart.com/methodology.
This dataset is licensed under the Creative Commons Attribution 4.0 International License. You may republish, remix, or extend this data for any purpose with attribution. Suggested citation format:
Cost Seg Smart Research Team. (2026). "Dallas, TX Cost Segregation Benchmarks 2026." Cost Seg Smart. 5 representative fixtures. Retrieved from https://dallascostseg.com/data/dallas-cost-seg-stats/
For interview requests, additional data slices, or related questions: [email protected].