Real Estate Investing in Karnes City, Texas (78118)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78118 (Karnes City, TX)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 27.0% of homes vacant — above national norms.
- Declining values: -4.0% 5-year CAGR — values have moved lower.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Karnes City, TX (78118)?
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Market Analysis: 78118 Karnes City
ZIP 78118 in Karnes City, TX carries a notable set of headwinds. Home values near $199K and rents of $963/mo sit inside a market where underwriting has to be tight.
The 78118 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Regionally, 78118 sits on the difficult end of the TX spectrum. The a credible choice for read — for disciplined operators — is that pricing reflects the difficulty.
The 78118 ZIP's population of 4,097 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that comes in at the need for careful underwriting.
Strategically, 78118 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 Karnes City:
Market Trends
Home Value History (with trend line)
📊 How Does 78118 Compare?
| Metric | 78118 | Karnes City | Texas |
|---|---|---|---|
| Home Value | $198,534 | $198,534 | $297,000 |
| 5-Year CAGR | N/A | N/A | 5.4% |
| Avg Rent | $963 | $963 | - |
| Cap Rate | 3.8% | 3.8% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78118 (Karnes City, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $198,534 |
| Monthly Rent | $963 |
| Price-to-Rent | 17.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.8% |
| Cap Rate | 3.8% |
| 5-Year IRR | N/A |
📈 Home Appreciation
| 1-Year | +3.8% ▲ |
| 3-Year CAGR | -3.1% ▼ |
| 5-Year CAGR | -4.0% ▼ |
| 10-Year CAGR | N/A |
🏠 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 (3.8%). 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 78118
Population: 4,097
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 78118
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
What is the rental occupancy rate in Karnes City, TX?
Occupancy in Karnes City, TX runs consistent with elevated vacancy. Well-priced units at $963/mo lease on reasonable timelines.
How do home values compare in Karnes City, TX?
In Karnes City, TX the median home value sits at $199K. Against the broader TX market, that reads as reasonable for most investors.
How strong is Karnes City, TX for real estate investors?
Karnes City, TX rates 2.0/5 for investability. With median values at $199K and rents near $963/mo, the market offers reasonable fundamentals for rental investors.
How should investors approach Karnes City, TX?
In Karnes City, TX the resilient play is typically careful cash-flow rentals with hands-on management. The combination of $199K prices and $963/mo rents suits that approach.
What is the average monthly rent in Karnes City, TX?
Expect rents around $963/mo per month in Karnes City, TX. With home values at $199K, the yield math works out to reasonable levels for rental investors.
You know 78118 now. You don’t know where it ranks.
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