Real Estate Investing in Covington, Texas (76636)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 76636 (Covington, TX)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Elevated vacancy: 9.9% vacancy may signal weakening demand.
- High price-to-rent: Price-to-rent ratio 33.0 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Covington, TX (76636)?
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Market Analysis: 76636 Covington
Put differently, ZIP 76636 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $346K median. It rewards specialists, not generalists.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 76636 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Within TX, ZIP 76636 trails on several market indicators that neighboring Hill County submarkets outperform. The gap is real and robust enough to shape underwriting.
A impressive renter share of 9% in 76636 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategy in 76636 is an operator game, not a passive one. Put differently, entry prices of $346K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Covington:
Market Trends
Home Value History (with trend line)
📊 How Does 76636 Compare?
| Metric | 76636 | Covington | Texas |
|---|---|---|---|
| Home Value | $346,037 | $346,037 | $297,000 |
| 5-Year CAGR | 3.4% | 3.4% | 5.4% |
| Avg Rent | $873 | $873 | - |
| Cap Rate | 2.0% | 2.0% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 76636 (Covington, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $346,037 |
| Monthly Rent | $873 |
| Price-to-Rent | 33.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.0% |
| Cap Rate | 2.0% |
| 5-Year IRR | 5.3% |
📈 Home Appreciation
| 1-Year | -1.3% ▼ |
| 3-Year CAGR | +0.9% ▲ |
| 5-Year CAGR | +3.4% ▲ |
| 10-Year CAGR | +7.8% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.0%). 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 76636
Population: 1,678
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 76636
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.
Frequently Asked Questions
How does Covington, TX rate as a rental market?
Our data puts Covington, TX at 2.0/5 for investability. Home prices of $346K and rents around $873/mo create a solid backdrop for investor activity.
How landlord-friendly is Covington, TX?
TX ranks as a landlord-friendly state for landlord-tenant law. Covington generally follows the statewide framework, so landlords face reasonable operating rules.
Should investors worry about vacancy in Covington, TX?
Covington, TX carries elevated vacancy risk. Expect measured absorption at market rents of $873/mo.
Does a duplex house hack pencil in Covington, TX?
House hacking works a challenging in Covington, TX. Rents of $873/mo against $346K acquisition make the strategy solid for owner-occupants.
What is the average monthly rent in Covington, TX?
Investors in Covington, TX typically see rents near $873/mo per month against $346K home values - a solid setup for rental cash flow.
You know 76636 now. You don’t know where it ranks.
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Community Ratings
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