Real Estate Investing in McAllen, Texas (78501)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78501 (McAllen, 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.
- High vacancy: 13.3% of homes vacant — above national norms.
- Elevated poverty: 22.9% poverty rate — can affect rent collection.
What’s happening in McAllen, TX (78501)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78501 McAllen
ZIP 78501 in McAllen, TX carries a durable set of headwinds. Home values near $196K and rents of $1,111/mo sit inside a market where underwriting has to be tight.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $196K asset, 78501 is the wrong submarket. If the plan prices in friction, the yield can still work.
The gap between 78501 and stronger McAllen ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
A durable renter share of 48% in 78501 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The right play in 78501 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in McAllen:
Property Strategy for 78501
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $71,954 | $930 | 9.3% | +6.5% | $71,954 |
| 2BR | $127,192 | $1,160 | 6.6% | +8.4% | $63,596 |
| 3BR | $194,307 | $1,510 | 5.6% | +7.4% | $64,769 |
| 4BR | $276,422 | $1,670 | 4.3% | +7.6% | $69,106 |
| 5BR | $390,665 | — | — | +7.3% | $78,133 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78501 Compare?
| Metric | 78501 | McAllen | McAllen-Edinburg-Mission, TX | Texas |
|---|---|---|---|---|
| Home Value | $196,260 | $214,233 | N/A | $297,000 |
| 5-Year CAGR | 5.4% | 5.5% | N/A | 5.4% |
| Avg Rent | $1,111 | $1,342 | N/A | - |
| Cap Rate | 4.4% | 4.9% | - | - |
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 78501 (McAllen, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $196,260 |
| Monthly Rent | $1,111 |
| Price-to-Rent | 14.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.8% |
| Cap Rate | 4.4% |
| 5-Year IRR | 9.9% |
📈 Home Appreciation
| 1-Year | +3.5% ▲ |
| 3-Year CAGR | +1.4% ▲ |
| 5-Year CAGR | +5.4% ▲ |
| 10-Year CAGR | +6.4% ▲ |
🏠 Rent Trends
| 1-Year | -9.5% ▼ |
| 3-Year CAGR | -3.0% ▼ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.4%). 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 78501
Population: 59,095
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 78501
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 2,538 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How high is vacancy risk in McAllen, TX?
Vacancy in McAllen, TX is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,111/mo.
What price range are homes in McAllen, TX?
Homes in McAllen, TX typically sell near $196K. Prices have moved at a 0.0% 5-year CAGR, which reliable long-term demand.
Is real estate in McAllen, TX a good investment right now?
Our data puts McAllen, TX at 3.0/5 for investability. Home prices of $196K and rents around $1,111/mo create a solid backdrop for investor activity.
How do experienced investors play McAllen, TX?
McAllen, TX investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($196K prices, $1,111/mo rents) make it a reasonable choice.
What do rentals go for in McAllen, TX?
Rents in McAllen, TX run near $1,111/mo. Compared with median home prices of $196K that produces solid gross yields for typical rentals.
You know 78501 now. You don’t know where it ranks.
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How 78501 ranks in McAllen-Edinburg-Mission, TX
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