Real Estate Investing in Donna, Texas (78537)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78537 (Donna, 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: 15.6% of homes vacant — above national norms.
- Elevated poverty: 36.7% poverty rate — can affect rent collection.
- Lower household income: $35,214 median — tenant affordability is tighter.
What’s happening in Donna, TX (78537)?
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Market Analysis: 78537 Donna
The 78537 ZIP in Donna, TX is a local-operator market. Outside capital chasing a $151K entry has to pair deep knowledge with the discount.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $151K asset, 78537 is the wrong submarket. If the plan prices in friction, the yield can still work.
Regionally, 78537 sits on the difficult end of the TX spectrum. The an appealing option for read — for disciplined operators — is that pricing reflects the difficulty.
Who lives in 78537 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
The right play in 78537 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 Donna:
Property Strategy for 78537
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $91,452 | $780 | 6.1% | +10.5% | $91,452 |
| 2BR | $107,244 | $970 | 6.5% | +11.5% | $53,622 |
| 3BR | $156,932 | $1,260 | 5.8% | +9.6% | $52,311 |
| 4BR | $238,828 | $1,400 | 4.2% | +7.4% | $59,707 |
| 5BR | $305,224 | — | — | +6.7% | $61,045 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78537 Compare?
| Metric | 78537 | Donna | McAllen-Edinburg-Mission, TX | Texas |
|---|---|---|---|---|
| Home Value | $151,469 | $151,469 | N/A | $297,000 |
| 5-Year CAGR | 7.6% | 7.6% | N/A | 5.4% |
| Avg Rent | $968 | $968 | N/A | - |
| Cap Rate | 5.0% | 5.0% | - | - |
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 78537 (Donna, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $151,469 |
| Monthly Rent | $968 |
| Price-to-Rent | 13.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.7% |
| Cap Rate | 5.0% |
| 5-Year IRR | 12.6% |
📈 Home Appreciation
| 1-Year | +8.6% ▲ |
| 3-Year CAGR | +4.3% ▲ |
| 5-Year CAGR | +7.6% ▲ |
| 10-Year CAGR | +8.5% ▲ |
🏠 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 (5.0%). 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 78537
Population: 51,346
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 78537
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
Is Donna, TX better for rentals, flips, or BRRRR?
A careful cash-flow rentals with hands-on management strategy Donna, TX best. The market produces stable results for that approach at the $151K price point.
Are renters plentiful in Donna, TX?
Tenant demand in Donna, TX is solid. The local workforce $968/mo rents across most rental classes.
Can owner-occupants cash flow in Donna, TX?
The a challenging house-hack environment in Donna, TX reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
How does Donna, TX stack up for property investment?
Donna, TX scores 3.0/5 for investability. Home values sit at $151K and rents near $968/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
Is TX a landlord-friendly state?
Donna, TX falls under TX landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
You know 78537 now. You don’t know where it ranks.
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How 78537 ranks in McAllen-Edinburg-Mission, TX
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