Real Estate Investing in Tow, Texas (78672)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78672 (Tow, 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: 53.0% of homes vacant — above national norms.
- 1-year downturn: Values declined 4.1% in the last year.
- Elevated poverty: 22.0% poverty rate — can affect rent collection.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Tow, TX (78672)?
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Market Analysis: 78672 Tow
The 78672 ZIP covers a section of Tow that demands careful diligence. Prices near $245K look accessible, but the work to make a deal cash flow is real.
Rent of $963/mo on a $245K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 78672 sits below the stated 0.0% once reality is priced in.
Nearby ZIPs in Tow have seen price recovery that 78672 has not matched. Llano County data supports the view that the spread is structural rather than temporary.
Demographically, 78672 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
Strategically, 78672 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Tow:
Market Trends
Home Value History (with trend line)
📊 How Does 78672 Compare?
| Metric | 78672 | Tow | Texas |
|---|---|---|---|
| Home Value | $245,298 | $245,298 | $297,000 |
| 5-Year CAGR | 3.8% | 3.8% | 5.4% |
| Avg Rent | $963 | $963 | - |
| Cap Rate | 3.1% | 3.1% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78672 (Tow, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $245,298 |
| Monthly Rent | $963 |
| Price-to-Rent | 21.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.7% |
| Cap Rate | 3.1% |
| 5-Year IRR | 6.9% |
📈 Home Appreciation
| 1-Year | -4.1% ▼ |
| 3-Year CAGR | -1.5% ▼ |
| 5-Year CAGR | +3.8% ▲ |
| 10-Year CAGR | +7.6% ▲ |
🏠 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 (3.1%). 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 78672
Population: 679
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
Frequently Asked Questions
What price range are homes in Tow, TX?
Median home price in Tow, TX is near $245K, with a 5-year CAGR of 0.0%. Prices have been reliable and supportive of buy-and-hold strategies.
Which real estate strategy fits Tow, TX?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Tow, TX. The numbers - $245K homes against $963/mo rents - support that play.
Is rental property easy to operate in Tow, TX?
Landlord-friendliness in Tow, TX is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
Is Tow, TX a good market for FHA house hackers?
Tow, TX is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $245K price point reasonable to enter.
How deep is the rental pool in Tow, TX?
Expect a solid tenant pool in Tow, TX. The rental market absorbs $963/mo rents without meaningful friction.
You know 78672 now. You don’t know where it ranks.
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