Real Estate Investing in Los Fresnos, Texas (78566)

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

Cameron County • Population: 24,927 • Data updated: September 2026

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Should you buy in 78566 (Los Fresnos, TX)? Our answer, based on the numbers below.

🏠 For Homebuyers
MIXED
Grade C (67/100)

Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.

📈 For Investors
MIXED
3.0 / 5 (52/100)

A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.

⚠️ Risks to Know
2 flags
  • 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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3.0/ 5

Investability

Overall investment appeal

2.0/ 5

Appreciation

Long-term value growth

4.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $224,345
Avg Monthly Rent $1,650
1% Rule ✗ Does Not Meet
Median Income $55,121
% Renters 25.2%

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.

Explore the Data — Click a Tab Below
🏦 Current 30-yr Fixed Mortgage Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS

Here's what matters if you're considering buying a home in Los Fresnos:

B Good
Buy Confidence Score: 71/100
Affordability
15/25
Appreciation
18/25
Stability
13/20
Timing
10/15
Rental backup
15/15
Affordability
Moderate
Homes cost 4.1× the median income
Value Trend
Rising (+5.4%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $1,650/mo if you need to move
Market Conditions
COOL
More inventory, negotiating room for buyers
Bottom Line: Mixed signals in this market. Research specific properties carefully and be prepared to negotiate.
❄️
COOL MARKET
Brownsville-Harlingen, TX Metro Area
More inventory, negotiating room for buyers
116 days
Average time to sell
Slow
5.0%
Listings with price cuts
Few Cuts
0.0%
Sale price vs asking
Below Ask
0.0%
Income needed for mortgage
Affordable
📅 Market conditions as of August 29, 2026 — updated weekly from Brownsville-Harlingen, TX metro data
🏠

Property Strategy for 78566

Which property type performs best in this market?

Best for Cash Flow
2BR
4.8% cap rate
Best for Appreciation
2BR
+11.9% 5yr CAGR
Best Overall Value
2BR
$75,060/bedroom
📊 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)

$234K$209K$183K$157K$132K$106KJul 2006Jul 2016Jul 2026

Rent History (with trend line)

No data available

📊 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% - -
💡 Why Invest in 78566? Click to expand

With a 3/5 investability rating, this ZIP shows solid fundamentals for buy-and-hold investors.

📊 See where this ZIP ranks in our Best-of lists →
A great house in the wrong ZIP is still a bad deal — screen every market by cash flow & cap rate.
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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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Investability
Good
Cap Rate
5.7%
Fair
5yr Growth
+5.0%
Moderate

📊 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
Negative Leverage — IRR / Tax Play Cap Rate: 5.7%  |  30yr Rate: 6.8%
Leverage reduces cash returns at current rates.

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.

Vacancy
13.2%
Moderate risk
Landlord Climate
5.0/5
Friendly
Value Trend (5yr)
+5.0%
Stable
Eviction process: Fast Rent control: Favorable

Demographics in 78566

Population: 24,927

💰 Median Household Income
$55,121
This area
$55,121
State
$70,593
USA
$74,580
🏠 Renter Occupied
25.2%
This area
25.2%
State
29.5%
USA
34.0%
💼 Unemployment Rate
3.7%
This area
3.7%
State
-25.4%
USA
3.7%
🎓 College Educated
19.3%
This area
19.3%
State
-5.8%
USA
33.7%
👤 Median Age
32.4 years
This area
32.4 years
State
-3.7 years
USA
38.9 years
🏚️ Vacancy Rate
13.2%
This area
13.2%
State
18.3%
USA
10.5%
👥 Population by Ethnicity
White 60.8%
Other/Mixed 38.1%
Hispanic/Latino 37.4%
Black/African American 1.0%
Asian 0.1%
👶 Under 18
32.7%
This area
32.7%
USA
22.0%
👴 65 and Over
10.2%
This area
10.2%
USA
17.3%
📊 Poverty Rate
25.4%
This area
25.4%
USA
11.5%

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

B+ Avg School Grade
5 Schools
15.7:1 Avg Class Size
$15,655 Avg Per Pupil

Schools in This ZIP Code

A Very Good

LOPEZ-RIGGINS EL

📚 Pre-K – 05 Elementary
👥
484 Students
👨‍🏫
14.7:1 Class Size
💰
$15,163 Per Student
A Very Good

LOS FRESNOS EL

📚 Pre-K – 05 Elementary
👥
558 Students
👨‍🏫
14.7:1 Class Size
💰
$15,163 Per Student
B+ Above Average

LOS CUATES MIDDLE

📚 06 – 08 Middle
👥
838 Students
👨‍🏫
17.2:1 Class Size
💰
$15,163 Per Student
B Good

LOS FRESNOS H S

📚 09 – 12 High School
👥
3,291 Students
👨‍🏫
16.2:1 Class Size
💰
$15,163 Per Student
C+ Average

DRISCOLL EXPRESS LEARNING CENTER

📚 Grade PK Elementary Limited Data
👥
11 Students
💰
$17,621 Per Student
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

3 Nearby
C+
South Texas Vocational Technical Institute-Brownsville
176 students · 14.1 mi
C
Southern Careers Institute-Brownsville
637 students · 14.6 mi
C+
Salon & Spa Institute
91 students · 14.6 mi

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.

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How 78566 ranks in Brownsville-Harlingen, TX

Every ZIP in this metro, ranked. Free.

Cash Flow → Appreciation → Affordable →
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