Real Estate Investing in Richmond, Texas (77406)
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Should you buy in 77406 (Richmond, TX)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Richmond, TX (77406)?
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Market Analysis: 77406 Richmond
ZIP 77406 in Richmond, TX carries a impressive set of headwinds. Home values near $423K and rents of $1,840/mo sit inside a market where underwriting has to be tight.
Rent of $1,840/mo on a $423K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 77406 sits below the stated 0.0% once reality is priced in.
In practical terms, 77406 offers a low basis, the region around Richmond has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Resident income in 77406 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategically, 77406 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 Richmond:
Property Strategy for 77406
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $273,562 | $2,190 | 5.8% | +6.0% | $136,781 |
| 3BR | $327,918 | $2,950 | 6.5% | +6.6% | $109,306 |
| 4BR | $437,416 | $3,670 | 6.0% | +7.0% | $109,354 |
| 5BR | $627,524 | — | — | +8.0% | $125,505 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 77406 Compare?
| Metric | 77406 | Richmond | Houston-The Woodlands-Sugar Land, TX | Texas |
|---|---|---|---|---|
| Home Value | $423,359 | $401,199 | N/A | $297,000 |
| 5-Year CAGR | 3.8% | 3.7% | N/A | 5.4% |
| Avg Rent | $1,840 | $1,782 | N/A | - |
| Cap Rate | 3.4% | 3.5% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 77406 (Richmond, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $423,359 |
| Monthly Rent | $1,840 |
| Price-to-Rent | 19.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.2% |
| Cap Rate | 3.4% |
| 5-Year IRR | 7.1% |
📈 Home Appreciation
| 1-Year | -0.1% ▼ |
| 3-Year CAGR | -0.2% ▼ |
| 5-Year CAGR | +3.8% ▲ |
| 10-Year CAGR | +4.0% ▲ |
🏠 Rent Trends
| 1-Year | -0.4% ▼ |
| 3-Year CAGR | +1.0% ▲ |
| 5-Year CAGR | +3.0% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.4%). 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 77406
Population: 65,716
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 77406
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 expensive is real estate in Richmond, TX?
Median home price in Richmond, TX is near $423K, with a 5-year CAGR of 0.0%. Prices have been stable and supportive of buy-and-hold strategies.
What is the typical renter like in Richmond, TX?
Richmond, TX offers a predictable renter base at the $1,840/mo rent level. Tenant turnover is reasonable for well-managed properties.
Are eviction rules reasonable in Richmond, TX?
For rental operators, Richmond, TX rates as landlord-friendly. The regulatory environment standard buy-and-hold operations.
Is Richmond, TX a good place for real estate investing?
Yes - Richmond, TX a 3.0/5 investability score. With $423K home prices against $1,840/mo monthly rent, the market delivers a reasonable entry point for new investors.
What is the average monthly rent in Richmond, TX?
Expect rents around $1,840/mo per month in Richmond, TX. With home values at $423K, the yield math works out to reasonable levels for rental investors.
You know 77406 now. You don’t know where it ranks.
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How 77406 ranks in Houston-The Woodlands-Sugar Land, TX
Every ZIP in this metro, ranked. Free.
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