Renovated Duplex with
New
For Sale
$889,000
1220 W Gray Street, Houston, TX 77019
Corner-lot property pairs a professional office layout with a private three-bedroom residence.
Property Size2,298 SF
Price / SF$386.86
Days on Market4
Property Features for 1220 W Gray Street
General Information
Standard status
Active
Size
2,298 SF
Property subtype
Multi-Family
Additional Details
Floor
First Floor
Office Units
1
Taxes and HOA fees
Annual Taxes
$19,570
Amenities
Engineered Hardwood,Tile
Basement,Den,Dining Room,Entry/Foyer,Living Room,Office,Utility Room
Yes
4
Washer Hookup,Electric Dryer Hookup
Appraiser
Bedroom on Main Level,En Suite Bathroom,Full Bath on Main Level,Granite Counters,Kitchen/Family Room Combo,ThreeBedroomsUp,Living/Dining Room
Corner Lot
No
Public
5000
Balcony,Sprinkler/Irrigation
Other
2298
Building Details
Building Size
2,298 SF
Year Built
1946
Year Renovated
2016
Buildings
1
Stories
2
Listing Agency:
Oro Realty
(713) 851-8059
Listed By:
Dana Hines · License #0679323
(713) 851-8059
Source:
Garygreene
Added: Aug 28
Changed: Aug 30
Last Checked: Aug 31 at 12:58PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Oro Realty
Investment Insights
Based on property information with market context.
This 2,298-square-foot duplex, built in 1946 and renovated in 2016, combines distinct residential and professional configurations. Each unit has a separate entrance. The first level is arranged as office space with rooms that can support a professional setting or creative studio, while the upper level includes three bedrooms and two bathrooms for residential occupancy.
Set on a corner lot at 1220 W Gray Street in Houston’s Montrose area, the property is steps from the new Harlow District. Its current arrangement can be maintained as two separate units, adapted into a single-family residence, or used as a multifamily property. Interior details include engineered hardwood and tile flooring, granite counters, a balcony, sprinkler irrigation, and a basement.
Set on a corner lot at 1220 W Gray Street in Houston’s Montrose area, the property is steps from the new Harlow District. Its current arrangement can be maintained as two separate units, adapted into a single-family residence, or used as a multifamily property. Interior details include engineered hardwood and tile flooring, granite counters, a balcony, sprinkler irrigation, and a basement.
Key Highlights
- 2,298 SF duplex on a corner lot
- Built in 1946; renovated in 2016
- Two units with separate private entrances
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$30,099
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.39%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$601,980
$602.0K
Cap Rate 7%
$429,986
$430.0K
Cap Rate 9%
$334,433
$334.4K
Market Conditions
NOI Build-Up for 2,298 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$45.5K $19.80/SF
− Vacancy
−$2.5K −$1.09/SF
EGI
$43.0K $18.71/SF
− OpEx
−$12.9K −$5.61/SF
NOI
$30.1K $13.10/SF
Area
Houston, TX
Vacancy
5.50%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$601,980
Cap Rate 7%
$429,986
Cap Rate 9%
$334,433
Alternative Uses
Best Use
Multifamily LT 5
$430.0K
$376.2K – $501.7K
NOI $30,099 @ 7.0% cap · market cap 3.39%
Second Best
Office B
$382.9K
$335.1K – $446.7K
NOI $26,804 @ 7.0% cap · market cap 3.02%
Theoretical Best
Office A
$590.9K
$517.1K – $689.4K
NOI $41,364 @ 7.0% cap · market cap 4.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Location Intelligence
Trade Area within ½ mile
2,494
Businesses Nearby
Explore this area
Business Placement
Demographics for 77019, TX
24,136
Population
14,387
Households
1.7
Avg Household Size
37
Median Age
76%
College-Educated
98%
High-School Grad
3.7 sq mi
ZIP Area
6,523
Density / Sq Mi
$108,353
Median Household Income
$75,871
Median Earnings
$1,886
Median Rent
$724,900
Median Home Value
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Corner-lot property pairs a professional office layout with a private three-bedroom residence.
Where is this duplex located?
The property is located at 1220 W Gray Street Houston, TX.
What is the asking price?
The asking price for this property is $889,000.
What are key features of this property?
This property features: 2,298 SF duplex on a corner lot; Built in 1946; renovated in 2016; Two units with separate private entrances
