Real Estate Investing in Stephenville, Texas (76401)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 76401 (Stephenville, TX)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 12.0% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 30.3 — hard to cash-flow at these prices.
What’s happening in Stephenville, TX (76401)?
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Market Analysis: 76401 Stephenville
Not every below-median market is a bargain. Stephenville's 76401 ZIP sits at signals that favor experienced operators who can absorb the risk $327K pricing implies.
The 76401 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Nearby ZIPs in Stephenville have seen price recovery that 76401 has not matched. Erath County data supports the view that the spread is structural rather than temporary.
Resident income in 76401 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
The right play in 76401 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Stephenville:
Property Strategy for 76401
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $198,377 | $1,170 | 4.2% | +11.1% | $99,189 |
| 3BR | $296,475 | $1,630 | 4.0% | +9.4% | $98,825 |
| 4BR | $431,672 | $1,900 | 3.2% | +9.7% | $107,918 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 76401 Compare?
| Metric | 76401 | Stephenville | Stephenville, TX | Texas |
|---|---|---|---|---|
| Home Value | $327,018 | $163,509 | N/A | $297,000 |
| 5-Year CAGR | 6.2% | 6.2% | N/A | 5.4% |
| Avg Rent | $899 | $899 | N/A | - |
| Cap Rate | 2.1% | 2.1% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 76401 (Stephenville, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $327,018 |
| Monthly Rent | $899 |
| Price-to-Rent | 30.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.3% |
| Cap Rate | 2.1% |
| 5-Year IRR | 8.4% |
📈 Home Appreciation
| 1-Year | +3.6% ▲ |
| 3-Year CAGR | +2.8% ▲ |
| 5-Year CAGR | +6.2% ▲ |
| 10-Year CAGR | +7.2% ▲ |
🏠 Rent Trends
| 1-Year | -4.2% ▼ |
| 3-Year CAGR | -0.2% ▼ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.1%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 76401
Population: 30,873
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 76401
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
How do experienced investors play Stephenville, TX?
The best-fit strategy in Stephenville, TX is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
How much do tenants pay in Stephenville, TX?
Expect rents around $899/mo per month in Stephenville, TX. With home values at $327K, the yield math works out to reasonable levels for rental investors.
How qualified is the tenant pool in Stephenville, TX?
The tenant pool in Stephenville, TX is solid, supported by local employment and population fundamentals. Rents of $899/mo are well-absorbed by the market.
Should investors worry about vacancy in Stephenville, TX?
Stephenville, TX sees elevated vacancy, which is reasonable relative to the broader TX rental market.
Is Stephenville, TX good for house hacking?
House hacking in Stephenville, TX is a challenging. With home values around $327K and rents at $899/mo, owner-occupants can offset a meaningful share of PITI.
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