Real Estate Investing in Laredo, Texas (78040)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78040 (Laredo, TX)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 15.7% of homes vacant — above national norms.
- Declining values: -1.0% 5-year CAGR — values have moved lower.
- Elevated poverty: 33.3% poverty rate — can affect rent collection.
- Lower household income: $33,819 median — tenant affordability is tighter.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Laredo, TX (78040)?
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Market Analysis: 78040 Laredo
ZIP 78040 in Laredo, TX carries a resilient set of headwinds. Home values near $139K and rents of $1,044/mo sit inside a market where underwriting has to be tight.
Rent of $1,044/mo on a $139K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 78040 sits below the stated 0.0% once reality is priced in.
Meanwhile, 78040 offers a low basis, the region around Laredo has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
A resilient renter share of 59% in 78040 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Distressed ZIPs reward experience. resilient returns are possible in 78040, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Laredo:
Market Trends
Home Value History (with trend line)
📊 How Does 78040 Compare?
| Metric | 78040 | Laredo | Laredo, TX | Texas |
|---|---|---|---|---|
| Home Value | $139,412 | $152,060 | N/A | $297,000 |
| 5-Year CAGR | N/A | 2.0% | N/A | 5.4% |
| Avg Rent | $1,044 | $1,119 | N/A | - |
| Cap Rate | 5.8% | 4.3% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78040 (Laredo, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $139,412 |
| Monthly Rent | $1,044 |
| Price-to-Rent | 11.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 9.0% |
| Cap Rate | 5.8% |
| 5-Year IRR | 4.8% |
📈 Home Appreciation
| 1-Year | +8.0% ▲ |
| 3-Year CAGR | -2.2% ▼ |
| 5-Year CAGR | -1.0% ▼ |
| 10-Year CAGR | +2.3% ▲ |
🏠 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 (5.8%). 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 78040
Population: 36,115
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 78040
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
Investor Insight: With 4,241 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What type of investing works in Laredo, TX?
A careful cash-flow rentals with hands-on management strategy Laredo, TX best. The market produces steady results for that approach at the $139K price point.
Are renters plentiful in Laredo, TX?
Laredo, TX draws a predictable base of working renters. Demand at the $1,044/mo rent level is reasonable for standard single-family and small multi rentals.
How expensive is real estate in Laredo, TX?
The median home value in Laredo, TX is roughly $139K. That puts it reasonable relative to the TX statewide average.
Is Laredo, TX a good market for FHA house hackers?
Laredo, TX offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,044/mo rent level.
Are landlord laws favorable in Laredo, TX?
Laredo, TX operates under TX law, which is landlord-friendly overall for landlords. Expect predictable treatment in typical lease and eviction cases.
You know 78040 now. You don’t know where it ranks.
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How 78040 ranks in Laredo, TX
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