Real Estate Investing in Alamo, Texas (78516)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78516 (Alamo, 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: 17.7% of homes vacant — above national norms.
- Elevated poverty: 23.0% poverty rate — can affect rent collection.
What’s happening in Alamo, TX (78516)?
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Market Analysis: 78516 Alamo
The 78516 ZIP in Alamo, TX is a local-operator market. Outside capital chasing a $169K entry has to pair deep knowledge with the discount.
Distressed markets are won on execution, not on spreadsheets. ZIP 78516 comes in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Within TX, ZIP 78516 trails on several market indicators that neighboring Hidalgo County submarkets outperform. The gap is real and substantial enough to shape underwriting.
From a cash-flow lens, 34,960 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.
The 78516 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Alamo:
Property Strategy for 78516
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $69,009 | $780 | 8.1% | +10.5% | $69,009 |
| 2BR | $113,165 | $970 | 6.2% | +9.4% | $56,582 |
| 3BR | $164,008 | $1,260 | 5.5% | +8.5% | $54,669 |
| 4BR | $231,116 | $1,400 | 4.4% | +7.4% | $57,779 |
| 5BR | $342,295 | — | — | +7.5% | $68,459 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78516 Compare?
| Metric | 78516 | Alamo | McAllen-Edinburg-Mission, TX | Texas |
|---|---|---|---|---|
| Home Value | $169,130 | $169,130 | N/A | $297,000 |
| 5-Year CAGR | 6.9% | 6.9% | N/A | 5.4% |
| Avg Rent | $1,242 | $1,242 | N/A | - |
| Cap Rate | 5.7% | 5.7% | - | - |
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 78516 (Alamo, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $169,130 |
| Monthly Rent | $1,242 |
| Price-to-Rent | 11.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.8% |
| Cap Rate | 5.7% |
| 5-Year IRR | 12.6% |
📈 Home Appreciation
| 1-Year | +7.3% ▲ |
| 3-Year CAGR | +3.9% ▲ |
| 5-Year CAGR | +6.9% ▲ |
| 10-Year CAGR | +7.8% ▲ |
🏠 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 (5.7%). 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 78516
Population: 34,960
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 78516
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
Frequently Asked Questions
Are homes affordable in Alamo, TX?
Alamo, TX home values average about $169K. That price point suits investors targeting rentals with $1,242/mo in monthly income.
Is real estate in Alamo, TX a good investment right now?
Alamo, TX rates 3.0/5 for investability. With median values at $169K and rents near $1,242/mo, the market offers reasonable fundamentals for rental investors.
What is the best play in Alamo, TX?
For Alamo, TX, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
What is it like being a landlord in Alamo, TX?
TX law landlord-friendly for landlords, and Alamo inherits those rules. Investors should still review local ordinances for rental licensing.
Is the tenant base reliable in Alamo, TX?
The renter base in Alamo, TX is reasonable for the $1,242/mo price point. Screening well and pricing to market typically yields even-keeled tenants.
You know 78516 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 78516 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 78516 ranks in McAllen-Edinburg-Mission, TX
Every ZIP in this metro, ranked. Free.
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