Real Estate Investing in Palacios, Texas (77465)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 77465 (Palacios, TX)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 27.3% of homes vacant — above national norms.
- Flat appreciation: Values have barely moved over 5 years (0.8% CAGR).
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Palacios, TX (77465)?
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Market Analysis: 77465 Palacios
From a cash-flow lens, ZIP 77465 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $188K median. It rewards specialists, not generalists.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $188K asset, 77465 is the wrong submarket. If the plan prices in friction, the yield can still work.
Nearby ZIPs in Palacios have seen price recovery that 77465 has not matched. Matagorda County data supports the view that the spread is structural rather than temporary.
On balance, 7,267 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.
leans the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Palacios:
Property Strategy for 77465
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $182,244 | $1,110 | 4.4% | +5.9% | $91,122 |
| 3BR | $239,868 | $1,410 | 4.2% | +5.5% | $79,956 |
Market Trends
Home Value History (with trend line)
📊 How Does 77465 Compare?
| Metric | 77465 | Palacios | Bay City, TX | Texas |
|---|---|---|---|---|
| Home Value | $188,131 | $188,131 | N/A | $297,000 |
| 5-Year CAGR | 0.8% | 0.8% | N/A | 5.4% |
| Avg Rent | $999 | $999 | N/A | - |
| Cap Rate | 4.1% | 4.1% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 77465 (Palacios, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $188,131 |
| Monthly Rent | $999 |
| Price-to-Rent | 15.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.4% |
| Cap Rate | 4.1% |
| 5-Year IRR | 5.0% |
📈 Home Appreciation
| 1-Year | +2.3% ▲ |
| 3-Year CAGR | -0.8% ▼ |
| 5-Year CAGR | +0.8% ▲ |
| 10-Year CAGR | +2.6% ▲ |
🏠 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 (4.1%). 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 77465
Population: 7,267
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 77465
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 do experienced investors play Palacios, TX?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Palacios, TX. The numbers - $188K homes against $999/mo rents - support that play.
Is the tenant base reliable in Palacios, TX?
The renter base in Palacios, TX is reasonable for the $999/mo price point. Screening well and pricing to market typically yields consistent tenants.
What do landlords charge for rent in Palacios, TX?
Rent in Palacios, TX is around $999/mo. The resulting rent-to-value relationship with $188K pricing is reasonable for most investor models.
Is housing expensive in Palacios, TX?
Palacios, TX median home values land near $188K. That is reasonable territory for investors looking at $999/mo-per-month rentals.
Should investors worry about vacancy in Palacios, TX?
Vacancy in Palacios, TX is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $999/mo.
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