Real Estate Investing in Magnolia, Texas (77354)

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

Montgomery • Population: 40,501 • Data updated: September 2026

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Should you buy in 77354 (Magnolia, TX)? Our answer, based on the numbers below.

🏠 For Homebuyers
MIXED
Grade C (59/100)

Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
1 flag
  • Elevated vacancy: 10.6% vacancy may signal weakening demand.

What’s happening in Magnolia, TX (77354)?

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3.0/ 5

Investability

Overall investment appeal

2.0/ 5

Appreciation

Long-term value growth

3.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $383,236
Avg Monthly Rent $1,800
1% Rule ✗ Does Not Meet
Median Income $112,562
% Renters 19.6%

Market Analysis: 77354 Magnolia

The 77354 ZIP in Magnolia, TX is a local-operator market. Outside capital chasing a $383K entry has to pair deep knowledge with the discount.

Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 77354 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.

Meanwhile, 77354 offers a low basis, the region around Magnolia has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.

On balance, 40,501 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.

The 77354 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.

Explore the Data — Click a Tab Below
🏦 Current 30-yr Fixed Mortgage Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS

Here's what matters if you're considering buying a home in Magnolia:

B Good
Buy Confidence Score: 70/100
Affordability
20/25
Appreciation
14/25
Stability
13/20
Timing
8/15
Rental backup
15/15
Affordability
Moderate
Homes cost 3.4× the median income
Value Trend
Declining (-2.9%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $1,800/mo if you need to move
Market Conditions
BALANCED
Even conditions for buyers and sellers
Bottom Line: Mixed signals in this market. Research specific properties carefully and be prepared to negotiate.
🏠

Property Strategy for 77354

Which property type performs best in this market?

Best for Cash Flow
2BR
6.1% cap rate
Best for Appreciation
5BR
+8.1% 5yr CAGR
Best Overall Value
3BR
$103,659/bedroom
📊 Compare All Property Types →
Type Median Value Est. Rent Cap Rate 5yr CAGR $/Bedroom
2BR $219,729 $1,870 6.1% +5.5% $109,864
3BR $310,977 $2,520 5.8% +5.7% $103,659
4BR $425,289 $3,140 5.3% +6.7% $106,322
5BR $691,205 +8.1% $138,241

Market Trends

Home Value History (with trend line)

$414K$364K$313K$263K$212K$162KJun 2006Jul 2016Jul 2026

Rent History (with trend line)

$1,830$1,769$1,708$1,647$1,586$1,525Oct 2021Mar 2024Jul 2026

📊 How Does 77354 Compare?

Metric 77354 Magnolia Texas
Home Value $383,236 $376,136 $297,000
5-Year CAGR 2.9% 2.8% 5.4%
Avg Rent $1,800 $1,829 -
Cap Rate 3.7% 3.8% -
💡 Why Invest in 77354? Click to expand

With a 3/5 investability rating, this ZIP shows solid fundamentals for buy-and-hold investors.

📊 See where this ZIP ranks in our Best-of lists →
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Landlord Ground Truth

Real numbers from people who own or manage rentals in ZIP 77354 (Magnolia, TX). Anonymous, moderated, never written by AI.

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Property managers serving Montgomery County

Manage rentals here? List your business →

RentLife Property Management offers property management services across Greater Houston, including Spring, Tomball, The Woodlands, Conroe, Hockley, Houston, Katy, Cypress, Kingwood, Humble, Magnolia, summary from their website

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Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.

Investability
Good
Cap Rate
3.7%
Low
5yr Growth
+2.9%
Slow

📊 Market Snapshot

Home Value $383,236
Monthly Rent $1,800
Price-to-Rent 17.7:1
1% Rule ✗ Fails

💰 Return Metrics

Gross Yield 5.6%
Cap Rate 3.7%
5-Year IRR 6.6%

📈 Home Appreciation

1-Year -2.9% ▼
3-Year CAGR -0.4% ▼
5-Year CAGR +2.9% ▲
10-Year CAGR +3.9% ▲

🏠 Rent Trends

1-Year +6.7% ▲
3-Year CAGR +2.6% ▲
5-Year CAGR N/A
Negative Leverage — IRR / Tax Play Cap Rate: 3.7%  |  30yr Rate: 6.8%
Leverage reduces cash returns at current rates.

The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.7%). 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.

Vacancy
10.6%
Moderate risk
Landlord Climate
5.0/5
Friendly
Value Trend (5yr)
+2.9%
Stable
Eviction process: Fast Rent control: Favorable

Demographics in 77354

Population: 40,501

💰 Median Household Income
$112,562
This area
$112,562
State
$70,593
USA
$74,580
🏠 Renter Occupied
19.6%
This area
19.6%
State
29.5%
USA
34.0%
💼 Unemployment Rate
2.2%
This area
2.2%
State
-25.4%
USA
3.7%
🎓 College Educated
40.6%
This area
40.6%
State
-5.8%
USA
33.7%
👤 Median Age
38.1 years
This area
38.1 years
State
-3.7 years
USA
38.9 years
🏚️ Vacancy Rate
10.6%
This area
10.6%
State
18.3%
USA
10.5%
👥 Population by Ethnicity
White 70.9%
Other/Mixed 21.2%
Hispanic/Latino 18.4%
Black/African American 5.3%
Asian 2.7%
👶 Under 18
26.8%
This area
26.8%
USA
22.0%
👴 65 and Over
11.7%
This area
11.7%
USA
17.3%
📊 Poverty Rate
8.3%
This area
8.3%
USA
11.5%

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 77354

B Avg School Grade
7 Schools
15.2:1 Avg Class Size
$11,422 Avg Per Pupil

Schools in This ZIP Code

B+ Above Average

BEAR BRANCH EL

📚 Pre-K – 04 Elementary
👥
568 Students
👨‍🏫
12.6:1 Class Size
💰
$11,422 Per Student
B+ Above Average

TOM R ELLISOR EL

📚 Pre-K – 04 Elementary
👥
494 Students
👨‍🏫
13.9:1 Class Size
💰
$11,422 Per Student
B Good

CEDRIC C SMITH

📚 Pre-K – 04 Elementary
👥
777 Students
👨‍🏫
15.1:1 Class Size
💰
$11,422 Per Student
B Good

BEAR BRANCH INT

📚 05 – 06 School
👥
1,019 Students
👨‍🏫
14.7:1 Class Size
💰
$11,422 Per Student
B Good

MAGNOLIA PARKWAY EL

📚 Pre-K – 04 Elementary
👥
859 Students
👨‍🏫
16.3:1 Class Size
💰
$11,422 Per Student
B Good

BEAR BRANCH J H

📚 07 – 08 Middle
👥
1,077 Students
👨‍🏫
16.5:1 Class Size
💰
$11,422 Per Student
C+ Average

MAGNOLIA H S

📚 09 – 12 High School
👥
2,258 Students
👨‍🏫
17.0:1 Class Size
💰
$11,422 Per Student
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

2 Nearby 18,599 Off-Campus Students
C
Lone Star College System
70,991 students · 9.8 mi
D
Grace School of Theology
593 students · 10.6 mi

Investor Insight: With 18,599 students living off-campus nearby, this area has strong rental demand from the college population.

Frequently Asked Questions

What are home prices like in Magnolia, TX?

The median home value in Magnolia, TX is roughly $383K. That puts it reasonable relative to the TX statewide average.

What real estate strategy is ideal for Magnolia, TX?

Magnolia, TX investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($383K prices, $1,800/mo rents) make it a reasonable choice.

Is it easy to find good tenants in Magnolia, TX?

Tenant demand in Magnolia, TX is solid. The local workforce $1,800/mo rents across most rental classes.

Should investors worry about vacancy in Magnolia, TX?

Vacancy in Magnolia, TX is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,800/mo.

Does a duplex house hack pencil in Magnolia, TX?

For house hackers, Magnolia, TX is a challenging. The $1,800/mo rent on a unit helps defray the mortgage on a $383K property.

You know 77354 now. You don’t know where it ranks.

This page stays free — all of it. What one page can’t tell you is how 77354 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.

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