Real Estate Investing in Los Fresnos, Texas (78566)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78566 (Los Fresnos, TX)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 13.2% of homes vacant — above national norms.
- Elevated poverty: 25.4% poverty rate — can affect rent collection.
What’s happening in Los Fresnos, TX (78566)?
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Market Analysis: 78566 Los Fresnos
ZIP 78566 inside Cameron County looks affordable on the surface — median value of $224K — but the discount exists for reasons that a careful buyer should understand before committing.
Rent of $1,650/mo on a $224K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 78566 sits below the stated 0.0% once reality is priced in.
ZIP 78566's metrics run below Cameron County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
A significant renter share of 25% in 78566 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
leans the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Los Fresnos:
Property Strategy for 78566
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $150,119 | $1,000 | 4.8% | +11.9% | $75,060 |
| 3BR | $234,269 | $1,350 | 4.1% | +9.3% | $78,090 |
| 4BR | $334,770 | $1,410 | 3.0% | +8.6% | $83,693 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78566 Compare?
| Metric | 78566 | Los Fresnos | Brownsville-Harlingen, TX | Texas |
|---|---|---|---|---|
| Home Value | $224,345 | $224,345 | N/A | $297,000 |
| 5-Year CAGR | 5.0% | 5.0% | N/A | 5.4% |
| Avg Rent | $1,650 | $1,650 | N/A | - |
| Cap Rate | 5.7% | 5.7% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78566 (Los Fresnos, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $224,345 |
| Monthly Rent | $1,650 |
| Price-to-Rent | 11.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.8% |
| Cap Rate | 5.7% |
| 5-Year IRR | 10.7% |
📈 Home Appreciation
| 1-Year | +5.4% ▲ |
| 3-Year CAGR | +2.6% ▲ |
| 5-Year CAGR | +5.0% ▲ |
| 10-Year CAGR | +5.7% ▲ |
🏠 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 78566
Population: 24,927
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 78566
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
How high is vacancy risk in Los Fresnos, TX?
Los Fresnos, TX vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
What is the median home value in Los Fresnos, TX?
The median home value in Los Fresnos, TX is roughly $224K. That puts it reasonable relative to the TX statewide average.
How much do tenants pay in Los Fresnos, TX?
Rental rates in Los Fresnos, TX average $1,650/mo. Tenant demand and $224K home values make the yield look reasonable by investor standards.
How landlord-friendly is Los Fresnos, TX?
For rental operators, Los Fresnos, TX rates as landlord-friendly. The regulatory environment standard buy-and-hold operations.
Is real estate in Los Fresnos, TX a good investment right now?
Yes - Los Fresnos, TX a 3.0/5 investability score. With $224K home prices against $1,650/mo monthly rent, the market delivers a reasonable entry point for new investors.
You know 78566 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 78566 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 78566 ranks in Brownsville-Harlingen, TX
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