Real Estate Investing in McAllen, Texas (78504)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78504 (McAllen, TX)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
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 McAllen, TX (78504)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78504 McAllen
ZIP 78504 in McAllen, TX carries a healthy set of headwinds. Home values near $266K and rents of $1,644/mo sit inside a market where underwriting has to be tight.
Distressed markets are won on execution, not on spreadsheets. ZIP 78504 sits at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Regionally, 78504 sits on the difficult end of the TX spectrum. The a credible choice for read — for disciplined operators — is that pricing reflects the difficulty.
On the rental side, 61,816 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.
Strategically, 78504 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 McAllen:
Property Strategy for 78504
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $189,792 | $1,320 | 5.0% | +7.9% | $94,896 |
| 3BR | $233,878 | $1,710 | 5.3% | +7.4% | $77,959 |
| 4BR | $318,540 | $1,900 | 4.3% | +7.1% | $79,635 |
| 5BR | $471,838 | — | — | +6.8% | $94,368 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78504 Compare?
| Metric | 78504 | McAllen | McAllen-Edinburg-Mission, TX | Texas |
|---|---|---|---|---|
| Home Value | $265,803 | $214,233 | N/A | $297,000 |
| 5-Year CAGR | 5.3% | 5.5% | N/A | 5.4% |
| Avg Rent | $1,644 | $1,342 | N/A | - |
| Cap Rate | 4.8% | 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 78504 (McAllen, TX). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 78504 (McAllen, TX)?
~25 seconds · no account needed · your report is anonymous
📊 Market Snapshot
| Home Value | $265,803 |
| Monthly Rent | $1,644 |
| Price-to-Rent | 13.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.4% |
| Cap Rate | 4.8% |
| 5-Year IRR | 10.1% |
📈 Home Appreciation
| 1-Year | +2.3% ▲ |
| 3-Year CAGR | +2.0% ▲ |
| 5-Year CAGR | +5.3% ▲ |
| 10-Year CAGR | +5.5% ▲ |
🏠 Rent Trends
| 1-Year | +3.0% ▲ |
| 3-Year CAGR | +2.5% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.8%). 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 78504
Population: 61,816
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 78504
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 3,016 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Do landlords face vacancy issues in McAllen, TX?
Expect elevated vacancy in McAllen, TX. Rents at $1,644/mo are absorbed by the tenant base without meaningful lag.
How do landlord-tenant laws work in McAllen, TX?
TX law landlord-friendly for landlords, and McAllen inherits those rules. Investors should still review local ordinances for rental licensing.
How strong is McAllen, TX for real estate investors?
McAllen, TX rates 3.0/5 for investability. With median values at $266K and rents near $1,644/mo, the market offers reasonable fundamentals for rental investors.
Can owner-occupants cash flow in McAllen, TX?
McAllen, TX is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $266K price point reasonable to enter.
How much rent can I charge in McAllen, TX?
McAllen, TX rentals go for roughly $1,644/mo a month. That puts gross yield in solid territory relative to $266K acquisition costs.
You know 78504 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 78504 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 78504 ranks in McAllen-Edinburg-Mission, TX
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 78504 (McAllen)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 78504 (McAllen, TX).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.