Real Estate Investing in Mercedes, Texas (78570)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78570 (Mercedes, 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.
- High vacancy: 15.7% of homes vacant — above national norms.
- Elevated poverty: 27.5% poverty rate — can affect rent collection.
- Lower household income: $38,396 median — tenant affordability is tighter.
What’s happening in Mercedes, TX (78570)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78570 Mercedes
This part of Hidalgo County is not an easy win. The 78570 ZIP comes in at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
The 78570 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
The gap between 78570 and stronger Mercedes ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
A impressive renter share of 25% in 78570 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategy in 78570 is an operator game, not a passive one. Turning to rents, entry prices of $137K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Mercedes:
Property Strategy for 78570
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $74,823 | $780 | 7.5% | +7.7% | $74,823 |
| 2BR | $88,742 | $970 | 7.9% | +8.6% | $44,371 |
| 3BR | $152,775 | $1,260 | 5.9% | +8.9% | $50,925 |
| 4BR | $220,558 | $1,400 | 4.6% | +6.4% | $55,139 |
| 5BR | $316,272 | — | — | +7.6% | $63,254 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78570 Compare?
| Metric | 78570 | Mercedes | McAllen-Edinburg-Mission, TX | Texas |
|---|---|---|---|---|
| Home Value | $137,292 | $137,292 | N/A | $297,000 |
| 5-Year CAGR | 7.3% | 7.3% | N/A | 5.4% |
| Avg Rent | $925 | $925 | N/A | - |
| Cap Rate | 5.3% | 5.3% | - | - |
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 78570 (Mercedes, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $137,292 |
| Monthly Rent | $925 |
| Price-to-Rent | 12.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.1% |
| Cap Rate | 5.3% |
| 5-Year IRR | 12.6% |
📈 Home Appreciation
| 1-Year | +6.5% ▲ |
| 3-Year CAGR | +3.7% ▲ |
| 5-Year CAGR | +7.3% ▲ |
| 10-Year CAGR | +8.3% ▲ |
🏠 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 (5.3%). 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 78570
Population: 33,596
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 78570
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
What is the average monthly rent in Mercedes, TX?
Average rent in Mercedes, TX is approximately $925/mo per month. Against $137K home values that yields a reasonable rent-to-price ratio.
What price range are homes in Mercedes, TX?
Typical homes in Mercedes, TX go for around $137K. The 5-year CAGR of 0.0% consistent price movement.
Is vacancy a concern in Mercedes, TX?
Vacancy in Mercedes, TX is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $925/mo.
Which real estate strategy fits Mercedes, TX?
In Mercedes, TX the healthy play is typically careful cash-flow rentals with hands-on management. The combination of $137K prices and $925/mo rents suits that approach.
How does Mercedes, TX rate as a rental market?
Yes - Mercedes, TX a 3.0/5 investability score. With $137K home prices against $925/mo monthly rent, the market delivers a reasonable entry point for new investors.
You know 78570 now. You don’t know where it ranks.
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How 78570 ranks in McAllen-Edinburg-Mission, TX
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